Tag Archives: john ralfe

Public sector pensions: cuts amount to 7%

Robert Peston’s analysis of the proposed public sector pension reforms from John Hutton contains this key calculation:

The estimate – made by the analyst John Ralfe – that the switch would save just £2bn a year, out of the estimated total annual cost of state pensions (much of which is hidden) of £30bn.

That £30bn is Ralfe’s estimate of the annual cost. It is double the official estimate, with the disparity due to a disagreement on the appropriate discount rate for valuing future liabilities.

A reduction in the value of retirement benefits of 1/15th would of course be unpleasant. But compared

Posted in News | Also tagged , and | 41 Comments
Advert

Recent Comments

  • Chris Cory
    While I agree with every word, I am at the same time, more than a little discombobulated. If we believe all this fine "power to the people" stuff, then isn't...
  • Ian
    The way the party runs itself is hardly an exemplar for putting our values into practice, is it? Nor evidence that senior people in the party have much interes...
  • David Allen
    British politics since the 2008 crash has been a contest between establishment Governments and insurgent opponents. The Tory and Labour establishment parties h...
  • Kevin Hawkins
    I have frequently commented on Lib Dem Voice that we should not take one week’s by-election results (or even several week’s results) seriously. We have goo...
  • Dan Falchikov
    Well said: "David Howarth’s Being Liberal explores the Liberal disposition: open-minded, suspicious of abuses of power, uncomfortable with hierarchy, treatin...