Defined Benefit

The Department for Work and Pensions (DWP) has increased its annual spend on employee's pension contributions by 12.5% over the past four years.

In a written response to a parliamentary question, minister of state for pensions Steve Webb (pictured) revealed the total member contribution cost to the department is £474m for the year ending March 31, 2011.

This has increased from the £421.9m spent by the department on pension contributions in 2008.

The rise in contributions will be of some concern to Webb's boss Iain Duncan Smith as he grapples with demands for departmental spending cuts.

The £53m increase over the past three years was almost all accounted for by Jobcentre Plus, which increased its contributions from £244m to £294m.

The contributions were made to the Principal Civil Service Pension scheme by the DWP, executive agencies and crown non-departmental bodies.