Public Service Pensions

Philip Hollobone Excerpts

Tuesday 20th December 2011 Commons Chamber

[Danny Alexander]

Members of trade unions do indeed have that right, and it will be for the unions to decide their individual processes. I made clear in my statement that the negotiations on the heads of terms had been completed, that this was the Government’s final position, and that we were proceeding to draft legislation on that basis.

[Mr Philip Hollobone (Kettering) (Con)]

Most of my constituents will never have access to a public sector pension, and if they have any private sector pension provision, it is likely to be neither guaranteed nor linked to inflation. Given that the cost of public sector pensions is now £32 billion a year and has increased by a third over the last 10 years, should not the agreement be warmly welcomed? Without it, we would leave a huge pension liability to be paid off by our children and grandchildren in the future.

[Danny Alexander]

The hon. Gentleman has described the position precisely. Over the next 20 or 30 years, the agreement will save taxpayers, including his constituents, tens of billions of pounds which it will be possible to use for other purposes. I recognise that many of his constituents in the private sector do not have access to pension provision, and I hope that that problem can be addressed, not least by means of the NEST scheme.