Police Employer Pension Contributions

Wayne David Excerpts

Wednesday 14th November 2018 Commons Chamber

[Mr McFadden]

Those are shocking numbers, both financially and in the potential impact on police numbers. As I said, it is simply intolerable to expect the public to cope with the consequences if they unfold in that way.

It is in those twin contexts—falling police numbers and rising violent crime, including a particular emergency relating to knife crime—that we must consider police resources. The origin of the changes to the pension scheme, which could affect these numbers further, are two changes in what is called the discount rate for calculating pension liabilities. The effect of the changes in the discount rate has been to increase the liabilities for employers—in other words, to increase their costs. My hon. Friend the Member for Harrow West (Gareth Thomas) just quoted the potential impact on London. According to the Association of Police and Crime Commissioners, the changes to pension costs across the country could mean that they have to find another £165 million next year, rising to £417 million the year after. By way of comparison, that is the same amount as the total budget for West Yorkshire police, which is the fourth biggest police force in England.

[Wayne David (Caerphilly) (Lab)]

My right hon. Friend has painted a graphic picture of the increased pressure on employer pension contributions for the country as a whole. When we boil it down to different police forces, the impact is truly clear. Let me give a small example—I say small, because Gwent, my area, is a relatively small police force. The ongoing pressure amounts to an annual increase of £5 million a year. That could mean a reduction of 100 police officers. In an area such as Gwent, that is very significant.

[Mr McFadden]

My hon. Friend has graphically set out the potential impact on a smaller police force such as Gwent. For my force in the west midlands, the commissioner and chief constable estimate that the extra costs from these pension changes could be around £22 million over the next two years. If these costs came from their budgets alone, the impact would be around 450 officers lost. That would be on top of the 2,000 that we have already lost. As I said to the Minister at the beginning of the debate, expecting the public to accept reductions of this magnitude in force levels after the cuts that have taken place over the past eight years would be intolerable.