Public Service Pensions

Jane Ellison Excerpts

Wednesday 2nd November 2011 Commons Chamber

[Danny Alexander]

I am very grateful indeed for the first welcome for my statement from an Opposition Member. The hon. Lady is right that it is important to consider low-paid workers, which is why we are proposing to move to a career-average basis, under which low-paid workers will keep more of their own contributions, instead of subsidising the pensions of the highest earners. It is also why we have tiered the contributions increase in order to try to prevent opt-out. The negotiations on the firefighters’ scheme are ongoing, and I am told they are going well. We have delayed the publication of the cost ceiling to make sure we can take into account all the issues raised by firefighters in the discussions.

[Jane Ellison (Battersea) (Con)]

I welcome today’s statement. Many of the measures will meet the concerns of people such as the firefighters I met yesterday. On career-average earnings, does my right hon. Friend share my aspiration about the system being fairer to those who have taken career breaks, many of whom will be women?

[Danny Alexander]

I am grateful to my hon. Friend for reminding me of that important point. Public service pensions must reflect not only the careers of people who spend an unbroken working life in the public sector, but the careers of the many people who take time out. By having a career-average basis, especially when each year’s contribution is revalued by earnings, people who take a career break will still get the full value of the contributions they have made in both parts of their career.