Police Employer Pension Contributions

Debate between Wayne David and Pat McFadden

Wednesday 14th November 2018 Commons Chamber

[Mr McFadden]

Those are shocking numbers, both financially and in the potential impact on police numbers. As I said, it is simply intolerable to expect the public to cope with the consequences if they unfold in that way.

It is in those twin contexts—falling police numbers and rising violent crime, including a particular emergency relating to knife crime—that we must consider police resources. The origin of the changes to the pension scheme, which could affect these numbers further, are two changes in what is called the discount rate for calculating pension liabilities. The effect of the changes in the discount rate has been to increase the liabilities for employers—in other words, to increase their costs. My hon. Friend the Member for Harrow West (Gareth Thomas) just quoted the potential impact on London. According to the Association of Police and Crime Commissioners, the changes to pension costs across the country could mean that they have to find another £165 million next year, rising to £417 million the year after. By way of comparison, that is the same amount as the total budget for West Yorkshire police, which is the fourth biggest police force in England.

[Wayne David (Caerphilly) (Lab)]

My right hon. Friend has painted a graphic picture of the increased pressure on employer pension contributions for the country as a whole. When we boil it down to different police forces, the impact is truly clear. Let me give a small example—I say small, because Gwent, my area, is a relatively small police force. The ongoing pressure amounts to an annual increase of £5 million a year. That could mean a reduction of 100 police officers. In an area such as Gwent, that is very significant.

[Mr McFadden]

My hon. Friend has graphically set out the potential impact on a smaller police force such as Gwent. For my force in the west midlands, the commissioner and chief constable estimate that the extra costs from these pension changes could be around £22 million over the next two years. If these costs came from their budgets alone, the impact would be around 450 officers lost. That would be on top of the 2,000 that we have already lost. As I said to the Minister at the beginning of the debate, expecting the public to accept reductions of this magnitude in force levels after the cuts that have taken place over the past eight years would be intolerable.

European Union Referendum Bill

Debate between Wayne David and Pat McFadden

Tuesday 16th June 2015 Commons Chamber

[Mr McFadden]

I have read the work by Open Europe. My hon. Friend is right to say it has made an assessment, but it is one assessment among many—there have been many others. As I go, I will explain why I think there is merit in Government Departments taking a proper look at this.

There has been much talk of whether the UK would adopt the Norwegian model, the Swiss model or some other model of being outside the EU. The Committee will be glad to know that I am not going to go through all the costs and benefits of those models today, but they all raise questions about being outside the EU that have not yet been answered.

Amendment 4 calls for a report from the Office for Budget Responsibility on the implications for the public finances of a British exit. Few would dispute that since the OBR was established it has gained a reputation for both independence and quality. The reports it produces on the Budget and the autumn statement are valued across the House and have helped to inform the debate about fiscal policy in the past five years. In the run-up to the recent election, my party called for the OBR to assess the tax and spending promises of each of the main parties, a demand supported by the Treasury Committee in the previous Parliament, although there was some debate about whether the request had come too late in the Parliament to be brought into being in time for the election.

[Wayne David (Caerphilly) (Lab)]

My right hon. Friend has mentioned some of the work of Select Committees, but he will also know that the Foreign Affairs Select Committee has done some work on the possibility of Britain leaving the EU and following the Norwegian or Swiss models. Will he find a way to ensure that those ideas and findings are brought into the national debate as well?