Public Service Pensions

Andrew Bingham Excerpts

Tuesday 20th December 2011 Commons Chamber

[Danny Alexander]

I am very proud indeed that we have managed to achieve something that Members on both sides of the House thought would be very difficult, if not impossible, to do—namely, to reach agreement between the Government and many of the trade unions on the long-term reform that is necessary to ensure that public sector workers continue to get the best possible pension schemes long into the future. The previous arrangements were unsustainable, but this one is sustainable, which is why I am confident in offering the House a 25-year guarantee that no party in the House will need to revisit these arrangements over that period.

[Andrew Bingham (High Peak) (Con)]

The Leader of the Opposition claimed recently that the Government were imposing a 3% tax rise on the lowest-paid workers. Will my right hon. Friend take this opportunity to clarify for my constituents that, under the Government’s offer, the lowest-paid workers will make no extra contribution whatever?

[Danny Alexander]

Yes, I am happy to confirm that. We set out at the beginning that no one earning less than £15,000 should see any contribution increase at all. In fact, through the consultation process, better terms were able to be offered in some cases. In particular, my right hon. Friend the Secretary of State for Health was able to offer better terms to lower-paid workers in the health sector. This demonstrates once again this Government’s commitment to supporting the lowest paid in these difficult times.