Pensions face one third cut

Public sector pension payouts could fall by as much as a third—thanks to a government trick with the way they are calculated.

The government plans to change the pension rises from following RPI inflation to the lower CPI rate.

This means the average public sector worker will see the amount paid into their pension fall from £7,250 a year to just £4,750.

Workers will lose up to £83 billion over 15 years.

The switch will affect up to five million public sector workers. And it could also have an impact on some private sector pensions too.