Police Pension Liabilities

Baroness Donaghy Excerpts

Tuesday 6th November 2018 Lords Chamber

[Baroness Williams of Trafford]

My right honourable friend the Policing Minister has absolutely recognised the impact on police funding of the pension contributions. He will therefore be working with both the Treasury and the police to come to a solution very soon to ensure that police forces have the resources they need to service the pensions of their police officers. In addition, my right honourable friends the Chancellor in his Budget, along with the Policing Minister and the Home Secretary, recognised the changing demands on the police and will be working towards a comprehensive settlement for 2019-20.

[Baroness Donaghy (Lab)]

My Lords, when people enter a pension scheme in the public sector, as anywhere, they have expectations. They also expect a certain amount of notice of any changes and to be told whether increased costs will impact on their job security. This does not seem to have been handled all that well—but that is not the nature of my question, which is: will the police be fully consulted? Will the Police Federation be fully consulted? Will there be decent notice of any proposed changes to the police pension scheme?

The Minister talked about the changing nature of work, but people have built up their pensions over many years and have expectations about what they will get at the end of their career. We would not want any unintended consequences such us people applying for early retirement when they see little hope of enhancement in the future. Will she give some information about what consultation will take place with the Police Federation to give sufficient notice to the police of any changes?

[Baroness Williams of Trafford]

The Budget in both 2016 and 2018 made the changes clear, but the discount rate has changed as growth predictions have changed. Demand on the police has changed. Those two factors are absolutely clear. On consulting the Police Federation and, indeed, the police, my right honourable friend the Policing Minister is working with both the police and the Treasury to ensure that pensions can be serviced. As the noble Baroness said, we do not want police officers feeling that they have to retire early. That should not be the case, so we will be working hard with both the police and the Treasury to ensure that the pension will be fully serviced.