8 articles on this subject, from across the site.
Analysis of how reducing future pension accrual by 20-40% would cut annual government spending on unfunded public-sector pensions, with cumulative savings reaching £495bn by 2057 in today's money.
Modelling shows reducing future pension accrual by 20-40% from 2027 could save £84bn to £168bn in today's money, though cash savings build gradually and depend on workforce age distribution.
Public pension reforms affect government finances in three distinct ways: accounting costs, liability reduction and cash payments. These operate on different timescales and have different magnitudes.
Cutting existing pensions would save cash immediately but affect current pensioners. Reducing future accrual saves little now but substantially lowers long-term liability as pensioners gradually transition to less generous schemes.
A government proposal to cut defined benefit pensions by 40% lacks sound comparison with defined contribution pensions, which offer less certainty and different risk profiles.
A 40% reduction in public-sector defined-benefit pensions could save around £19-21 billion annually after accounting for lost income tax, though actual savings would depend on means-tested support and legal challenges.
The government sold state-owned businesses to raise revenue and reduce state involvement in industry. Whilst privatisation brought substantial one-off money, the relationship between these sales and national debt reduction was more complex than a simple transaction.
Treasury short-termism, weak regulation, privatisation without oversight, and foreign ownership prioritising dividends have combined to underinvest in water and rail infrastructure.
