Thursday, 14 October 2010
Town Hall pension pay outs cost taxpayer £6.3 Billion
It has been revealed that each household last year paid £300 towards council employee's pension bill of £6.3 Billion.
This is down to a massive increase in public employed staff during the labour governments reign, to try and shore up the unemployment figures by creating non jobs. By non jobs I mean red tape, bureaucratic administrative roles, paper pushing whatever you want to call it, basically wasting taxpayers money.
Those entitled to a pension rocketed to 1.2 million in 2009/10 up 46% from 20005/06
Payouts from the Local Government Pension Scheme are now more than four times higher than when Labour came to power in 1997. Emma Boon, of The TaxPayers’ Alliance, warned that the scheme faces a £53billion deficit.She added: “Swift and firm reforms are essential to stop these costs escalating further out of control in the long-term, and lighten the load on council budgets in the short-term. The scheme needs to move away from defined benefits to defined contributions and employee contributions need to be increased.” Whitehall insiders believe a fifth of the £6.3billion paid in pensions last year came from taxpayers.
The figures, released by the Department for Communities and Local Government, showed contributions from the scheme’s 1.7 million members rose by three per cent to £2billion. A further £2.6billion came from the scheme’s £132billion investment fund.
Sir Steve Bullock, of the Local Government Association, said the scheme was different from others in the public sector because staff make significant contributions. He added: “We need to make sure it meets the challenges of an ageing population. “It needs to be sustainable to provide a decent pension for workers and remain fair to taxpayers and employers.”
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