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Local Government: Pensions

Communities and Local Government written question – answered on 3rd May 2011.

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Photo of Natascha Engel Natascha Engel Chair, Backbench Business Committee

To ask the Secretary of State for Communities and Local Government what account was taken of planned increases in employees' contributions to the Local Government Pension Scheme in the local authority grant settlement for (a) 2012-13, (b) 2013-14 and (c) 2014-15; and if he will make a statement.

Photo of Bob Neill Bob Neill The Parliamentary Under-Secretary of State for Communities and Local Government

Decisions about the overall level of Government grant to local government are taken in spending reviews.

The local government settlement in the 2010 spending review was determined in the context of the overall level of affordable public spending, consistent with the Government's aim of tackling the fiscal deficit. It took into account a wide range of factors which will affect local authority budgets over the period.

The Government announced at the spending review that they accepted the view of the Independent Public Service Pensions-Commission that there is a clear rationale for public servants to make a greater contribution if their pensions are to remain fair to taxpayers and employees, and affordable for the country.

The cost of the Local Government Pension Scheme to taxpayers has risen from £1.5 billion in 1997-98 to £5.8 billion in 2009 -10. In this context, it is right and fair to take steps to protect local taxpayers from the cost of further increases.

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