Is the UK’s public sector facing a looming cash crunch?
A looming cash crisis is threatening to wipe out some of the savings and pensions of some public sector workers in the UK.
This week’s official statistics revealed that the number of public sector employees on fixed pensions fell to 7,914, which was down from a peak of 10,957 just over a year ago.
This is down from the 7,891 public sector staff on the pensions of people with a fixed pension at the end of last year.
The latest figures also show that the public sector has cut the amount of money it spends on pensions, with an increase of £20.4m in public sector pensions spending last year to £1.7bn.
A further £10.2m was spent on pay rises and a further £6.7m on health, education and social care.
The overall amount of spending on public sector pension entitlements has fallen from £1,931bn in 2011 to £950m in 2017.
The UK’s pension system is already stretched.
The Office for National Statistics says the UK pension system will reach its debt ceiling of £11.5 trillion in 2021 and is expected to be close to that by 2023.
The government has promised to raise the age at which people can start getting a pension by a quarter from 65 to 67.
But the government’s plans to raise rates to 20% in 2021, with the introduction of a new universal pension, will mean that by 2025 pensioners will have to pay more into their pensions.
And if the government doesn’t raise rates, then a rise in the cost of pensions could be a real problem for public sector pay.
The Treasury has been under pressure to raise wages and pensions, but there are fears that this will be difficult given the cuts in spending.
The chancellor has promised that the government will spend £1bn a year on social care in the next five years.
That money will come from the new £1 billion-a-year Universal Social Charge.
This will mean higher prices for many goods and services, and in some cases more government spending.
But it will also mean people will have less money to spend.
The new Universal Social Care levy is expected increase spending on social services by £1 per year in 2021.
But if the UK fails to raise its rate of inflation, the cost to taxpayers of the Universal Social Credit could be £500m in 2020-21.
Public sector pensions The government plans to keep the age of retirement at 65, which is currently the highest in the EU.
But a recent analysis by the Institute of Fiscal Studies (IFS) said that, unless Britain increases its age at retirement to 67, it could run a budget deficit of £1tn by 2021.
The IFS predicts that this shortfall would hit the public service pension system by around £60bn by 2025.
The report said that if the rate of growth in pensions increases at the same rate as the rate in wages and wages increases, it would cause public sector employers to spend £8bn on pension benefits by 2021-22.
This would result in a net reduction of about £5bn in public service pensions.
The Institute of Directors said that the impact of rising pension costs would be felt in higher taxes.
It said that higher tax receipts were unlikely to help reduce the deficit.
“Pension benefits have been used to boost the economy for decades, but if we do not find a way to lower pension costs, we risk losing the revenue advantage that pensioners receive,” it said.
Public services have been hit by a wave of austerity measures in recent years, with cuts to the public services budget, the cuts to benefits, the reduction in the number and quality of public servants, the closure of schools and hospitals, and privatisation of health and education services.
The public services pension system has been the subject of fierce debate and public opinion in recent months, with many calling for the government to make a fresh start.
However, the IFS warned that the budget implications of pension cuts are likely to be severe, with pensioners being hit by higher taxes and spending cuts that are likely at a time when the economy is struggling.
The cost of public services is expected continue to rise as the economy continues to contract.
The Government has promised a “fairer” pension system, but critics argue that this is not enough.
The Independent Council for Public Services (ICPS), which represents the public servants unions, said the government needs to “make a bold, credible commitment to make public services more sustainable, sustainable pensions and sustainable social care”.
This would include making the pension system a more affordable, sustainable, and sustainable option for public servants.
Sources: Business Insider, The Independent, The Times, The Sun, The Guardian, The Financial Times, Telegraph, Business Insider