New figures from the Treasury show the net public service pension liability stands at £1.13trn, nearly half of all Government liabilities.
Released this morning, the ‘whole of government accounts’ are a new way of consolidating financial information from central and local government, the NHS and public corporations in one place. The figures are for the year to March 31 2010.
The Government’s total liabilities, including gilt edged securities, comes to £2.42trn and its total assets £1.2trn. However this does not take into account tax revenue which in 2010 stood at £488bn.
The new approach, known as whole of government accounts, is intended to put government bookkeeping on the same footing as private companies.
The figures are being published to coincide with the Office of Budget Responsibility’s first assessment of the long-term health of public finances.
The report is likely to reignite the debate about the cost and sustainability of public sector pensions, after last month saw teachers striking over changes to their pensions which could see them paying more into their schemes for longer.