Public sector pension costs treble in three years

The expenditure on public service pensions is due to more than treble in three years from £1.2bn in 2006-07 to £3.8bn in 2009-10, according to figures highlighted by the Liberal Democrats.

The data which reveals the growing disparity was contained in the Pre-Budget Report.

Commenting, Liberal Democrat Pensions Spokesperson, Lord (Matthew) Oakeshott said: "At a time when private sector pensions are being cut to ribbons and taxpayers are struggling to pay their bills, these ballooning pension costs are the real future liabilities, not the measures announced yesterday.

"Every year the Treasury persistently and grossly underestimates the cost of public sector pensions. It must be down to either incompetence or wishful thinking.

"The Government is making a great play of its plans to give pensioners an extra £60 each. But if ministers had kept public sector pension costs down to what they had estimated only 3 years ago, they could have given each pensioner closer to £200 extra each."