Commenting on the proposed public sector strikes, Prof. Philip Booth, Editorial Director at the Institute of Economic Affairs, said:
“Public sector pensions cost nearly 40% of salary for most public sector workers such as teachers. Neither employers nor employees pay anything like the true cost of their pensions and the burden will fall on future generations of taxpayers. With government spending already over half of national income, reform of public sector pensions cannot be avoided.
"The industrial action proposed here effectively involves public sector workers holding current taxpayers and future generations of taxpayers to ransom. Private sector workers are already facing much higher taxes as well as receiving poorer pension provision than public sector workers. The reality of the costs of public sector pension schemes must be addressed."
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Notes to editors
Prof Philip Booth was Vice Chairman of the Public Sector Pensions Commission, an initiative set up by the Institute of Economic Affairs, the Institute of Directors and other groups. Its final report was released in July 2010 and can be viewed by clicking here .
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.
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