Public Service Pensions Bill Debate

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Department: HM Treasury
Tuesday 4th December 2012

(11 years, 11 months ago)

Commons Chamber
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Eilidh Whiteford Portrait Dr Whiteford
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Most people in Scotland, whether they work in the public sector or not, recognise that these pension reforms—particularly the increase in contributions and the requirement to work for longer—have little to do with designing better pension schemes and everything to do with the short-term aim of deficit reduction. I do not think that public sector employees should be picking up that tab.

Ministers have relentlessly pursued affordability while abandoning sustainability and fairness. That is the wrong approach at this time. Most public sector workers have faced a pay freeze for the past three years. Their wages have fallen in real terms while they have experienced substantial increases in their cost of living, through increases in the price of food, petrol and domestic heating bills. They are being asked to pay more, to work longer and to accept significantly lower pensions thereafter. To me, that is just not a reasonable proposition. Public sector employees do demanding jobs, often under pressure and in difficult circumstances.

Alan Reid Portrait Mr Alan Reid (Argyll and Bute) (LD)
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Will the hon. Lady give way?

Eilidh Whiteford Portrait Dr Whiteford
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I will not; I am conscious that other Members want to speak.

Many of those public sector workers are already on quite modest wages, and they deserve measured and proportionate schemes that will give them confidence that they are saving adequately for their old age. They want to know that the goalposts will not be shifted yet again as they approach an ever-increasing retirement age. The Bill fails those tests, which is why I will oppose it this evening.

--- Later in debate ---
Alan Reid Portrait Mr Alan Reid
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I just want to put it on record that the hon. Member for Banff and Buchan (Dr Whiteford) attacked her own Scottish Government. It is the Scottish Government who decide the level of contributions made to pension schemes in Scotland and how generous those schemes are. Under the Bill, that decision is devolved to them.

Question put, That the Bill be now read the Third time.