I note that Gold-plated public sector pensions are costing every family an average of £900 a year.
This is far greater than the amount many private sector workers can afford to put aside annually for their own retirement BUT it is what they must cough up in the form of taxes to look after their State sector colleagues!
Authoritative research from The Institute of Economic Affairs shows the cost of inflation-linked schemes for nearly six million state employees such as doctors, nurses, teachers and policemen has reached more than £22.3billion each year.
On average each one of the 25million households in the country must pay £900 to meet this bill and, according to the experts, this figure will pass the £1,000 mark and go on increasing. This huge burden will have to be met by today’s children when they start earning.
Richard Lambert, director-general of the CBI, the business lobby group, warned:
"’The failure to get to grips with public sector pensions is creating a wholly unsustainable burden for the taxpayer. It is also leading towards a society with two classes of citizen – one with a generous, early pension to look forward to, the other funding this through taxes while working longer and with a more uncertain retirement for themselves."
Chancellor Gordon Brown’s rapid expansion of the state payroll – 650,000 taxpayer-funded jobs have been created since Labour came to power in 1997 – is one reason why bills will go up.
To make matters worse, the argument that public sector workers deserve a better pension because they get paid less has disappeared. Official figures show the average salary for a full-time public sector worker is now £25,102, compared to £22,873 for somebody in the private sector. The State has moved to ensure its employees get paid the most.
£18billion is paid out each year to retired members of unfunded schemes. The total rises to £22 billion if it includes the £4billion contribution paid by town halls to the council workers’ schemes. The number of public sector workers on six-figure salaries has more than trebled to nearly 1,000 in five years, figures revealed.
The top earners include BBC executives, members of Labour- dominated quangos and Whitehall mandarins. Despite the boardroom level salaries, civil servants are not exposed to the risks of the private sector. They also enjoy superior pension packages. In 2001, 320 staff at 25 public sector bodies earned £100,000 or more. By this year the figure had soared to 996.
Face it – the State is feathering the nest of those slaves who work directly for it by imposing punitive taxation on those who don’t.