Public Service Pensions

Margot James Excerpts

Wednesday 2nd November 2011 Commons Chamber

[Danny Alexander]

I am grateful for the hon. Gentleman’s welcome of the tone we have taken. I hope that, in due course, he will welcome the substance as well. As to valuation information, it is being provided in the context of the scheme-by-scheme discussions. The trade unions have put forward many requests for information to be provided so that alternatives can be costed. All that work is going on in the context of the scheme-by-scheme discussions, but the valuation that was going to take place has been suspended on the basis that changes have been made, not least to the discount rate, which make that work invalid. It is best to wait until a new scheme is in place before we carry that work forward.

[Margot James (Stourbridge) (Con)]

I very much welcome the transitional arrangements outlined by my right hon. Friend for people 10 years away from retirement. It is particularly important for groups that would have joined the public services at a time when, unlike now, public sector pay was less than private sector pay. Will he outline roughly how many people will be affected?

[Danny Alexander]

I am grateful for those comments. The transitional protection is a very important part of this new offer. It is right that people who are within 10 years of retirement should have certainty about their planning for retirement. That principle has been observed on both sides in respect of the state pension age. I estimate that the transitional provision will protect more than 1 million public sector workers from any impact at all as a result of the changes.