What happened to the Rishi Sunak I knew at school?
Danny Alexander is, as usual, the man left holding the shield ahead of the union onslaught. He has a short article in today’s Sun, and appeared on the
Today programme earlier to defend the government’s plans. His defence is the same twofold one that we’ve heard before: that the new system is both a fiscal necessity and fair. Although it seems to
me that more emphasis is now being placed on the latter. As Alexander puts it himself in the Sun, “we also have to be fair to all taxpayers, including those who don’t have such good pension
deals and who can’t be expected to keep on working longer and paying more so public servants don’t have to.” Communicating this, and communicating the fact that the the lowest paid public
sector workers will be protected from the changes, will no doubt be one of the government’s presentational priorities from now through until conference season.
There is a growing fear, though, that this is going to become an annual fandango for the coalition. The Today Programme also carried a sparky discussion which set out the problem: if public sector workers depart from their pensions schemes, as some are
threatening to, then the burden on those remaining may have to increase. As the BBC’s Paul Lewis concluded, “It’s a good [pension] scheme, even at these new rates. But, of course, if people do
pull out, there’ll be fewer paying in and less money to pay next year’s pensions.” So far, the government has been using the prospect of further pensions cuts mainly as a threat against
militating union bosses. It may have to become a necessity.
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