Public Service Pensions

Pat Glass Excerpts

Wednesday 2nd November 2011 Commons Chamber

[Danny Alexander]

That is a very good question. We are, of course, listening carefully to representations. As I have said, we have delayed setting a cost ceiling for the firefighters’ pension scheme, particularly in the light of some of the issues that my hon. Friend has mentioned, but what we are discussing now is the normal pension age for schemes; early retirement arrangements on an actuarily reduced basis will remain in place.

[Pat Glass (North West Durham) (Lab)]

Most of the examples given by the Chief Secretary have involved well-paid public sector workers who have been in continuous employment, but many of my constituents do not fall into that category. Can he tell us how a low-paid part-time worker earning, say, £8,000 a year and working 15 hours a week would fare?

[Danny Alexander]

I cannot give a specific example, because I do not have the necessary figures to hand, but I can say that I expect the lowest-paid people to benefit most from these arrangements. At present, those on the lowest salaries and with the flattest career paths contribute most to the pensions of the highest earners. The change to a career-average basis will ensure that many workers, particularly of the sort whom the hon. Lady has described, end up with more rather than less income in retirement. I consider that to be a right and proper reward for those people’s commitment to public service.