Cost of public sector schemes expected to double by 2015

Figures from the Office for Budget Responsibility indicate annual costs will rise from £4bn in 2010/2011 to £9bn in 2014/2015, or £143 for every one of the 62.7 million inhabitants of the UK.

Clegg said although public sector workers deserve a decent income in retirement, the current situation is unfair.

“Private sector workers have already seen final salary schemes close, while returns from defined contribution schemes fall,” he said. “So can we really ask them to keep paying their taxes into unreformed gold-plated public sector pension pots? It’s not just unfair, it’s not affordable.”

His comments have attracted angry responses from public sector unions.

Unite’s assistant general secretary for the public services, Gail Cartmail, rejected Clegg’s position, claiming the current level of public sector pension provision is self-funding. She added that the cost of providing a public sector pension is the same as a typical final salary scheme in the private sector.

“We are not talking about gold-plated riches here, but modest pensions needed to help loyal public servants in their old age,” she said.

Dave Prentis, Unison general secretary, said: “These myths are scaremongering. The average pension in local government is just £4,000 a year, dropping to £2,600 for women.”