Public Service Pensions

Andrew Percy Excerpts

Wednesday 2nd November 2011 Commons Chamber

[Danny Alexander]

It is true that I gave the figure of 1% of the pay bill. That is an assumption that was audited by the Office for Budget Responsibility and published in the relevant fiscal forecast that it presented. It is precisely for the reason given by the hon. Lady that we have chosen to tier the pension contribution increases according to income, so that no one earning less than £15,000 a year will experience any contribution increase. Those earning between £15,000 and £21,000 a year will experience a much reduced increase, while the heaviest burden of increases will be borne by the highest earners. That is the right and proper way in which to ensure that there are no opt-outs.

[Andrew Percy (Brigg and Goole) (Con)]

While it is true that all taxpayers pay for the pensions that we are discussing, it is low-paid private sector workers working beyond retirement age—such as my dad—who are subsidising public sector pensions while receiving none of the benefits. I therefore welcome the proposed changes, and hope that my former colleagues in the teaching profession will accept them.

Firefighters’ pensions were mentioned earlier. Firefighters from my constituency whom I met yesterday were worried less about change than about whether they would be fit to do their job after the age of 55. Are the Government still prepared to discuss that issue with the union?

[Danny Alexander]

Yes, and John Hutton said in his report that he thought it appropriate to retain a lower retirement age for firefighters, the armed forces and the police. It is precisely because of the importance of such issues that the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Bromley and Chislehurst (Robert Neill)—who is leading the negotiations—is taking longer than expected to set the cost ceiling. That will enable us to ensure that the arrangements for firefighters are appropriate and will allow them to continue to receive a very decent pension in return for what is a very important contribution to our society.