Public Service Pensions

Stephen Lloyd Excerpts

Wednesday 2nd November 2011 Commons Chamber

[Stephen Lloyd (Eastbourne) (LD)]

I welcome the statement. As the Chief Secretary knows, I broadly support the direction of travel that the Government have been taking, but I had some concerns. I think that tremendous progress has been made and I am grateful for that. I have a technical question that is important to a lot of my constituents: what is the current split between employer and employee contributions for teachers and nurses, and how would that change under his proposals?

[Danny Alexander]

I am grateful for my hon. Friend's welcome. Today’s announcement will increase the cost ceiling for the talks. We will make sure that the employer contribution is still significantly greater than the employee contribution, but of course the contributions increase that we are proposing rebalances them to take account of past increases and longevity. On the teachers’ pension scheme for England and Wales, the gross cost ceiling that we are setting out today will be 21.7%, the taxpayer contribution will be 12.1% and the employee contribution will be 9.6%. Of course these matters still have to be discussed in the teacher scheme-specific negotiations, but that is the basic framework that we are setting out today.