Don’t buy the right-wing spin: Public sector pension costs set to fall
As soon as the TUC voted to undertake industrial action in defence of public sector pensions on November 30th, the right-wing ideologues were doing the rounds of TV studios.
Attack dogs like Mark Littlewood, Director-General of the Institute for Economic Affairs, laid out their central argument, which is that, both in terms of short-term deficit reduction and long-term debt maintenance, public sector pensions are unsustainable.
You are likely to hear that a lot over the next few months. However, it is worth repeating again and again and again that it is not true. As reported by Stephen Henderson on Left Foot Forward in July:
“The Office of Budget Responsibility’s July 2011 Fiscal Sustainability report (pdf) looks long into the future (2060) and guesses at the likely proportions of GDP that might arise as the population becomes more elderly.
“The assumptions are based on current policies, not government proposals. Confirming earlier findings in the Hutton Report (pdf), they clearly predict the cost of public pensions will fall from 2% of GDP to 1.8% in 2030 and 1.4% in 2060 – without any of the current Hutton proposals.”
And, as written by Michael Burke earlier that month:
The justification for the attack on public sector pensions is rapidly being unravelled. The chart below has had a good airing and even made it onto the BBC’s main news programme last night.

Ministers Francis Maude and Justine Greening have attempted to supplement this point with the claim that the costs will rise ‘as we are all living longer’. But this factor is already included in the Hutton (pdf) calculations of falling costs, as rising life expectancy is included in the calculation (clearly noted in the chart).
Burke went on to argue:
“The real reason for the attack on public sector pensions is actually set out in the terms of reference that Hutton accepted from the government.
“In the very first point of the terms of reference Hutton must have regard to:
“‘the growing disparity between public service and private sector pension provision, in the context of the overall reward package – including the impact on labour market mobility between public and private sectors and pensions as a barrier to greater plurality of provision of public services…’
“The ‘greater plurarity of provision of public services’ is Treasury-speak for privatisation; therefore the very first objective of the review is to ensure private firms can take over the functions of the public sector services – and that they can do so without the costly inconvenience of providing pensions.”
Whatever is being disputed here, it is not about affordability. As the right-wing noise machine roars into life, remember that fact.
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http://twitter.com/northerntuc/status/114243391562326016 Northern TUC
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http://twitter.com/knox_harrington/status/114243431307542528 Neil Atkinson
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http://twitter.com/danielelton/status/114243487880314880 Daniel Elton
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http://twitter.com/politicalplanet/status/114243639064018944 Political Planet
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http://twitter.com/gemmatumelty/status/114243799781351424 Gemma Tumelty
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http://twitter.com/danielelton/status/114243918727622656 Daniel Elton
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http://twitter.com/evamahar/status/114244250169909248 Eva Mahar
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http://twitter.com/danielelton/status/114244550331072513 Daniel Elton
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http://twitter.com/eddy39/status/114244947691061248 Graham
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http://twitter.com/petebrookes/status/114245288851550208 pete brookes
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http://twitter.com/notapatchon/status/114245472968904704 not a patch on…
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http://twitter.com/deadbloke/status/114245726606852096 Mags
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http://twitter.com/degsypcs/status/114245939094495232 derek thomson
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http://twitter.com/coolchiccy/status/114245944291246080 Amanda Hodgson
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http://twitter.com/mariebethk/status/114246090198482945 Mariebeth Kilbride
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http://twitter.com/curlyminx/status/114246217264930816 Debs
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http://twitter.com/falseecon/status/114246245354192896 False Economy
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http://twitter.com/leecurran/status/114246498094559233 Lee Curran
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http://twitter.com/singhdasa/status/114247178196762624 Shirley Humphreys
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http://twitter.com/nautilusinred/status/114247352109379584 Nautilus in Red
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http://twitter.com/sea55red/status/114247801902338049 Sandra Ayres
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http://twitter.com/lenarthur2/status/114247944521265152 Len Arthur
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http://twitter.com/ravensrod/status/114248504381161472 Ferret Dave
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http://twitter.com/vivlives001/status/114248514019667968 Viv Williams
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http://twitter.com/bzz88/status/114249596502425600 HeyHo ~ Leonard Ho
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http://twitter.com/mark_brophy/status/114250183981809665 Mark Brophy
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http://twitter.com/jonathand/status/114250356925542400 Jonathan Davis
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http://twitter.com/john_mcirvine/status/114250408372867073 John McIrvine
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http://twitter.com/maryxmaguire/status/114251257425833984 Mary Maguire
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http://twitter.com/lynnhancock/status/114251575005945856 Lynn Hancock
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http://twitter.com/therightarticle/status/114251891856261120 Michael
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http://twitter.com/martinmcivor/status/114252524638322688 Martin McIvor
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http://twitter.com/martinmcivor/status/114252878155223040 Martin McIvor
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http://twitter.com/toddogroats/status/114252987282628608 david carpenter
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http://twitter.com/liza_harding/status/114253058350911488 Liza Harding
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http://twitter.com/hannahgould1/status/114253287099858944 Hannah Gould
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http://twitter.com/robertstoker/status/114255001144143872 Robert Stoker
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http://twitter.com/nhsspy/status/114255176340226048 Watching You
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http://twitter.com/dogcatchicken/status/114255937170182144 Tim
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http://twitter.com/clarionsingers/status/114255949761495040 Birmingham Clarion
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http://twitter.com/simon_watkins/status/114257024648355840 Simon Watkins
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http://twitter.com/brightonbeaker/status/114257626052833280 Ian Evans
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http://twitter.com/tonybraisby/status/114258267416432640 Tony Braisby
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http://twitter.com/danceswfascists/status/114258329446006784 Dances With Fascists
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http://twitter.com/shenanigans_pcs/status/114258935652954112 Helen Flanagan
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http://twitter.com/brumagainstcuts/status/114259687565836288 Brum Against Cuts
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http://twitter.com/steve_trow/status/114261646037356545 Steve Trow
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http://twitter.com/sianrabi/status/114267701945438208 Sian Davies
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http://twitter.com/alanwarnernut/status/114273299256721409 Alan Warner
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http://twitter.com/samtarry/status/114277265549950976 Samuel Tarry
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Ash
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http://twitter.com/superfurryandy/status/114278170794004480 Andy Bean
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http://twitter.com/popdeath/status/114281035948240896 Chris Rowan
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http://twitter.com/shamikdas/status/114283051487477760 Shamik Das
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http://www.iea.org.uk Mark Littlewood
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Richy
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Chris Clothier
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http://twitter.com/iamanian/status/114387597324857344 Ian Gleed
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http://twitter.com/gillwatts/status/114392218244096000 Gill Watts
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http://twitter.com/whalebonebcr/status/114396399495430146 whalebonebcr
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http://twitter.com/fbusouthern/status/114411074874376193 Region 12 Secretary
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http://twitter.com/shesgotspies/status/114414047801257984 ShesGotSpies
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http://twitter.com/barryfunite/status/114421681312907264 barry f
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http://twitter.com/paulrooke10/status/114439841516765184 Paul Rooke
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http://twitter.com/2me2you2me/status/114441347229954049 2me2you
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http://twitter.com/jonathanpsadler/status/114442603843424256 Jonathan Sadler
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http://twitter.com/stutakesphotos/status/114444579792625664 Stuart Hellingsworth
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http://twitter.com/purbeckpashmina/status/114445204316094464 Purbeck Pashmina
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http://www.iea.org.uk Mark Littlewood
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http://twitter.com/yrotitna/status/114457283441864705 Juan Voet
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Mr. Sensible
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http://twitter.com/markpettifer65/status/114619874852089856 mark pettifer
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http://twitter.com/andrewhodgepcs/status/114638393480192000 Andrew Hodge
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http://twitter.com/andrewhodgepcs/status/114638393480192000 Andrew Hodge
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http://twitter.com/raggyguy/status/114638952249573376 some bloke
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http://twitter.com/raggyguy/status/114638952249573376 some bloke
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http://twitter.com/londoniww/status/114655305404653569 London IWW
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Alex
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http://www.leftfootforward.org/2011/09/lord-john-hutton-pensions-report-coalition-defence/ Hutton should read his pensions report again before leaping to Cameron’s rescue | Left Foot Forward
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http://twitter.com/binthecondems/status/115026628580605953 sue
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Leon Wolfson
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http://twitter.com/tonydowling/status/115314352021712896 Tony Dowling
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Graeme
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http://twitter.com/cupepension/status/116593490644836352 Kevin Skerrett
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http://twitter.com/kreynolds118/status/116594288065921024 Keith Reynolds
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http://www.leftfootforward.org/2011/10/david-cameron-pensions-crisis/ Cameron’s talk won’t solve the pensions crisis | Left Foot Forward
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http://www.leftfootforward.org/2011/11/look-left-25-11-11/ Look Left – Workers prepare to fight slasher Osborne | Left Foot Forward
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