TAXPAYERS may be hit with a bill of up to £41bn per year to cover the cost of public sector pensions, according to research out today.
This bill would represent £1,600 per family, the Centre for Policy Studies (CPS) said, due to the generosity of the pensions given to state workers.
The total payout would come from £17bn of employer contributions, £15bn to cover the gap between contributions and payouts, and at least £9bn from the end of contracting-out the think-tank said.
There could even be a further £2bn cost from out-of-date life-expectancy modelling the bill’s architects are using, the CPS claimed.
“Lord Hutton claimed that his proposals for public sector pension reform would be fair, sustainable and balanced; and that taxpayers can have confidence that the costs are controlled,” said CPS director Tim Knox.
“Sadly, none of this is true – taken together, the coalition’s pension proposals are unfair and the costs – at £1,600 a year for every household – are clearly not controlled.”