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Official statistics has shown the disparity between state employees and private employees

Date: (13 July 2012)    |    

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It was a known fact but has been given an official stamp to it. The pensions enjoyed by the state workers are twice the size of those of their private counterparts it has been revealed by the Office for National Statistics.
This is despite working for fewer hours, and earning 30 per cent more than their private counterparts on an average.
The figures, from the Office for National Statistics, highlight a familiar ‘pension’s apartheid’ with the public sector gaining at the expense of taxpayers.
Some 82 per cent of state employees are contributing to an occupational pension, with a typical retirement pot amounting to £90,100. The equivalent figures for private sector workers are 38 per cent and £40,000.
Separate research, published yesterday by the Office for Budget Responsibility, the Government’s economic watchdog, reveals the scale of the public sector pension’s liability.
Around £960billion of retirement promises have been made to today’s public sector workers, the equivalent of a £37,000 bill for every family.
Exclusive figures, compiled by the financial advisers Hargreaves Lansdown, reveal the extraordinary gulf between the two types of workers.
They examine the case of two 26-year-olds, who earn exactly the same salary throughout their 40-year working life, starting on £30,000 and ending on £60,000.
The civil servant would retire on an annual pension of £40,310 a year – even after the Government’s recent changes – but the private sector worker would pick up only £11,980 a year.
Critics said the figures demolish the rationale behind recent strikes by state workers, including teachers and doctors, over changes to their pensions.
Ministers insist public sector workers must pay more for their pensions and work longer, while protecting the lowest paid and those close to retirement.
Yesterday Danny Alexander, Chief Secretary to the Treasury, said state workers continue to receive pensions which are ‘among the very best available’.
The OBR said that the changes will save taxpayers around £430billion over the next 50 years as workers contribute more money into their pensions and retire when they are older.
Robert Oxley, campaign manager of the TaxPayers’ Alliance, said ‘The difference in the value of public and private sector pensions is in stark contrast to who is actually paying for those provisions.
The ONS report showed that the average state worker with a full-time job is paid £14.83 per hour, compared with only £11.41 per hour for a private sector worker – a difference of 29.9 per cent.

 

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