Alistair Darling last week told Britain’s 5.8 million public sector workers that pay rises would be capped at just 1 percent and that their pension benefits could not last much longer.
He said, “Public pensions need to be broadly in line with those offered in the private sector.
“So, by 2012 contributions by the state to public service pensions for teachers, local government, NHS and the civil service will be capped—saving around £1 billion a year.”
Teachers are likely to be the first in the firing line as their scheme is the first to be revalued.
The government’s proposals would mean teachers facing demands to pay an extra
£300 a year.
But rather than being a burden on the state, public sector worker are lending money to the government.
NHS workers paid £7 billion into their scheme last year. The amount paid out to retired members was £3 billion.