The party slammed the Government after Monday’s pre-Budget report highlighted the growing disparity between public and private sector pensions – while the Government freezes the pension lifetime allowance for five years from 2010, spending on public sector pensions will have tripled in three years to reach £3.8bn in 2009/10.
Shadow Chancellor Vince Cable has also hit out at the Conservatives claiming the party is “split” over public sector pension reform.
He says: “It now transpires that there is a major split within the Conservatives on public sector pensions, with David Cameron trying to give business the impression that they are tough on the issue, while Chris Grayling’s line to public sector employees is that nothing will change. This isn’t leadership but short-term opportunism. It’s very clear from the pre-Budget report that public sector pension commitments are skyrocketing. This is a serious long-term issue which must be dealt with honestly. That is why we have called for an independent commission to review public sector pensions.”