Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, whether the Government has made an assessment of the potential merits of changing the remit of the public sector pension cap in order to harmonise its application on all areas of the public sector.

The Public Service Pensions Act 2013 provided for an employer cost cap mechanism to ensure that the costs of public service pension schemes remain sustainable in the future. The mechanism provides that the cost to the employer of providing pension benefits is kept within defined margins, thereby protecting the taxpayer from unforeseen cost risks.

Where the cost cap is breached, it is for the responsible authority to agree, in consultation with employers and members, or their representatives, appropriate changes to bring costs back within the defined margins. There are no plans to prescribe that a particular action must be taken to rebalance costs, but each scheme is required to set out the default change that will be made in the event agreement cannot be reached.