The UK Government last night doubled the amount of additional funding available for the governments in Scotland, Wales and Northern Ireland to tackle Covid – but First Minister Nicola Sturgeon is querying the Treasury’s announcement.
The Treasury says this means the Devolved Administrations can now spend an additional £860 million, increased from the initial £430 million announced earlier last week.
Chancellor Rishi Sunak confirmed the increased funding following discussions with the Devolved Administrations. This will continue to ensure the Devolved Administrations can take the Covid precautions they feel are necessary to keep people safe.
The additional amounts now being provided to each government on top of their Autumn Budget 2021 funding (my italics – Ed.) are:
Scottish Government – £440 million
Welsh Government – £270 million
Northern Ireland Executive – £150 million
These amounts will continue to be kept under review.
These are additional amounts on top of the combined £77.6 billion confirmed for this year at the Autumn Budget 2021. It means that the Devolved Administrations have the certainty they requested to spend additional funding now rather than waiting for Supplementary Estimates in the new year.
Chancellor Rishi Sunak said:“Following discussions with the Devolved Administrations, we are now doubling the additional funding available.
“We will continue to listen to and work with the Devolved Administrations in the face of this serious health crisis to ensure we’re getting the booster to people all over the UK and that people in Scotland, Wales and Northern Ireland are supported.”
However First Minister Nicola Sturgeon continued to query the additional funding in a series of tweets last night.
The First Minister tweeted: “: “Before we get spin on ‘doubling’, the £220m announced last week was NOT new or additional (it was actually £48m less than we had been expecting). Seeking confirmation if this new £220m is additional (tho if so £48m will just make up last w/k loss) & if it has to be repaid to the extent it is new/additional, @scotgov will make sure it goes in full to helping business and the overall Covid effort.”
She added in another tweet: “As infections soar and businesses suffer, we still need much more urgency in action/support from UK Gov – so that devolved gov hands not tied. To that end, it was disappointing and frustrating that neither the PM nor the Chancellor attended this evening’s COBRA.“
The UK Government must urgently reintroduce the furlough scheme so that Scotland can take protective measures against the omicron variant whilst protecting jobs, according to Scottish Greens MSP Lorna Slater.
The funding is needed to support workers and businesses already suffering due to a significant loss in trade and closures caused by local outbreaks, as well as allowing devolved governments to take public safety measures to stop the spread of the new strain of the virus.
Without economic support, the options available to the Scottish and Welsh governments and Northern Irish Executive are more limited.
Scottish Greens Lothian MSP Lorna Slater said:“The UK Government has taken an utterly chaotic approach to COVID, with confusing messages undermined by the Prime Minister himself failing to follow the rules. Omicron is spreading fast and the UK Government must recognise the clear risks to vulnerable people and act decisively.
“The festive period is already disrupted, with many people cancelling plans for gatherings, and hospitality businesses and communities across Lothian are struggling. People need to be supported.
“In Scotland we are taking the steps to reduce the impact of the virus. Now it’s time for the UK Government to act responsibly and do the right thing by reintroducing furlough where it is needed.”
“Self-employed people could be particularly impacted this Christmas, so it’s vital those who missed out last time are included in the scheme, and that sick pay is enhanced to make it easier for people to self-isolate.”
Treasury figures published today show breakdown of the record £41 billion per year settlement for the Scottish Government
Scottish Government receives £126 per person of Barnett-based funding for every £100 per person of equivalent UK Government spending in England and Wales
Figures reaffirm UK Government’s commitment to levelling up across the whole of the UK
Figures released today by the Treasury set out how the UK Government will provide a record level of funding to the Scottish Government over the next three years – worth £41 billion a year.
The Block Grant Transparency publication provides a detailed breakdown of the funding settlements announced for Scotland, Wales and Northern Ireland at Spending Review 2021.
The £41 billion annual funding settlement is the largest, in real terms, since devolution more than 20 years ago. It ensures that the Scottish Government are well-funded to improve public services such as education, housing, health and social care, and will support the UK Government’s mission to level up the UK and build back better and greener from the pandemic.
In addition to Block Grant funding, the UK Government is also making direct investments in Scotland, such as committing more than £170 million through the Levelling Up Fund and the Community Ownership Fund, which will help to improve local infrastructure, regenerate town centres, and could even help to buy your local pub or community sports club.
Scotland will also benefit from cuts to Air Passenger Duty to improve connectivity and support jobs at Scottish airports.
UK Chief Secretary to the Treasury, Simon Clarke said:“We’re committed to ensuring Scotland receives its fair share, and the latest Spending Review has provided a record £41 billion a year to the Scottish Government.
“This is funding substantial additional spending on key public services – as set out in last week’s Scottish Budget.
“We’ve also ensured people in Scotland have been supported throughout the pandemic, and the UK Government’s schemes have supported around one in three Scottish jobs. Now we’ll continue to work with the Scottish Government as we progress our recovery.”
Scottish Secretary Alister Jack said:“Funding for the Scottish Government is the highest it has ever been, at a record £41 billion a year.
“The block grant settlement comes on top of significant direct UK Government investment in Scotland. We are committed to levelling up right across the UK, and are working with the Scottish Government and local councils to improve communities the length and breadth of Scotland.
“We recently announced a £191 million boost for Scottish community projects, on top of the £1.5 billion we are investing in City Deals in Scotland.
“For almost two years, the UK Government has been focused on protecting people’s lives, livelihoods and jobs. We will continue to tackle the pandemic while building a brighter future with a strong economy for people in every part of the UK.”
At Budget 2017, the Treasury committed to publish an annual Block Grant Transparency publication after each UK Government Budget to show a breakdown of changes to the devolved administrations’ block grant funding.
This report is intended to support greater transparency and accessibility to the people of Scotland as to how the UK Government provides funding to the Scottish Government
Additional funding from the UK reserve will be made available to the governments in Scotland, Wales and Northern Ireland to progress their vaccine rollout and wider health response, the UK Government has confirmed today.
While the devolved administrations are well-funded to continue their response to Covid-19, and have their own reserves and contingency funds, any additional in-year Barnett funding will not be confirmed until early 2022 through the Supplementary Estimates process.
HM Treasury has therefore announced that additional funding will be made available to the devolved administrations to provide greater certainty and allow them to plan as they tackle Covid-19 during the crucial weeks ahead.
HM Treasury will set this amount of additional funding in the coming days and will keep it under review in the following weeks.
The UK Government has already provided the devolved administrations with an extra £12.6 billion through the Barnett formula this year – this includes £1.3 billion confirmed at the recent Autumn Budget and takes their total funding this year to £77.6 billion.
This is on top of UK Government spending on vaccines and tests for the whole of the UK and UK-wide support for businesses and jobs.
Chancellor Rishi Sunak said:“Throughout this pandemic, the United Kingdom has stood together as one family, and we will continue to do so.
“We are working with the governments in Scotland, Wales and Northern Ireland to drive the vaccine rollout to all corners of the United Kingdom and ensure people and businesses all across the country are supported.”
If the amount of funding provided up front to each devolved administration is more than the Barnett consequentials confirmed at Supplementary Estimates then any extra amount will be repaid in 2022-23, or over the Spending Review period if necessary.
If the Barnett consequentials are higher than the amount provided up front the devolved administrations will keep the extra funding.
The news was released as First Minister Nicola Sturgeon was updating MSPs on the latest coronavirus restrictions.
Spending Review and Autumn Budget 2021: Universal Credit Taper Factsheet
FACTSHEET ISSUED BY HM TREASURY
The UK Government says the best way to support people’s living standards is through good work, better skills, and higher wages.
We will always give families the support they need and the tools to build a better life for themselves.
The UK’s modern Universal Credit (UC) benefit system ensures that people on the lowest wages are given the support they need to thrive and fulfil their potential.
As an incentive to find good work as the UK economy moves to a high-wage, high-productivity economy, the Government is changing the rate at which people’s UC award gradually reduces once they earn a salary – making work pay.
How does the Universal Credit Taper work?
The taper rate means that if people work more hours, their support is gradually withdrawn. It was withdrawn far more quickly in the old system.
Currently that taper rate starts at 63 pence – so for every £1, after tax, a person earns, their UC payment is reduced by 63pence.
The Government is taking decisive action to make sure work pays, and permanently cutting this taper rate by 8p from 63p to 55p, ensuring more money in people’s pockets.
Some households can earn a set amount before the taper kicks in. This is called the work allowance.
What is the Work Allowance?
Households on UC who are in work and either looking after a child or have a household member with limited capability for work are being supported with an increase in their work allowances.
This is the amount that a person can earn before support begins to be withdrawn as the taper rate kicks in.
Work allowances are currently set at £293 a month if the household receives housing support, or £515 if they do not receive housing support. These are both being increased by £500 per year.
Who is affected?
1.9 million households will benefit from these changes. For example, within five weeks, as a result of these changes:
A single mother of two, renting in Darlington, working a full-time job on the National Living Wage, will see her take-home income increase by £1,200 on an annual basis.
A couple with two children, renting their home with their two children, where one partner works full time at the National Living Wage, and the other works 16 hours a week at National Living Wage will be £1,800 per year better off.
Taken together, this is an effective £2.2bn tax cut for around 2 million of the lowest earning working families.
This applies to England, Scotland and Wales. The Northern Ireland Executive will be provided with funding to implement an equivalent measure.
Who has called for it?
the TUC:“If the aim of UC is to make work pay, the taper rate needs to be revisited’
Centre for Social Justice: “increasing work allowances would help those claimants who are highly motivated to re-enter a weakened labour market to have their incomes supported.”
Joseph Rowntree Foundation: ‘Increasing work allowances and reducing the taper rate would strengthen work incentives and help protect families on low earnings from poverty.”
Centre for Policy Studies: “The Government should implement improvements to work incentives within UC through a cut to the taper rate and increased work allowances. This is desirable in itself and would complement a broader economic programme for increased employment post-pandemic.”
When will it be introduced?
Changes like this are usually introduced at the start of the financial year in April, but in order to support families through the Winter, the reduction to the taper rate and increase to the work allowances will be implemented by the beginning of December 2021.
This builds on continued support to tackle cost of living:
We are supporting millions of workers by increasing the National Living Wage to £9.50 an hour in April 2022 from £8.91.
Young people and apprentices will also see their wages boosted as the National Minimum Wage for people aged 21-22 goes up to £9.18 an hour and the Apprentice Rate increases to £4.81 an hour.
Investing £170million in 2024-25 to increase the hourly rate to be paid to early years providers to deliver the government’s free childcare hours.
Saving consumers £3billion over the coming years on alcohol duty. The freeze will save consumers 3p off a pint of beer, 2p off a pint of cider, 14p off a 75cl bottle of wine and 52p off a 70cl bottle of Scotch.
The average driver will pay around £15 less fuel duty per tank as we freeze fuel duty for twelfth consecutive year, compared with pre-2010 plans.
Taking into account the increase in the National Living Wage, changes in Universal Credit, the freezing of the income tax Personal Allowance and the introduction of the Adult Social Care Levy:
A single parent with two children, working 16 hours a week at the National Living Wage in 2022/23 will still be around £590 better off in cash terms than if none these changes had been made.
A single earner couple with two children, working 35 hours a week at the National Living Wage in 2022/23 will still be around £1,200 better off in cash terms than if none these changes had been made.
New analysis by the independent Joseph Rowntree Foundation reveals that the rising cost of living wipes out much of the financial gain some families will receive from the Universal Credit changes announced yesterday.
Weekly incomes and Costs for 2022/23
Family 1: single adult, no children, not working
Family 2: single parent, with one young child (assume age 5), part-time 16 hours per week
Family 3: couple with two young children (assume 7 and 5). One FT worker
Family 4: single parent, with one young child (assume age 5), full-time 35 hours per week
Family 5: Couple with two young children (assume 7 and 5). 1 FT worker (35 hours), 1 PT worker (16 hours)
Weekly income before new announcements
£77
£278
£433
£333
£489
Weekly gain from taper rate and work allowance
£0
£8
£19
£19
£31
Total loss from higher cost of living due to…
-£13
-£16
-£23
-£18
-£24
1) increase in energy prices
-£7
-£7
-£7
-£7
-£7
2) overall cost of living increase
-£6
-£8
-£13
-£8
-£13
3) increase in National Insurance and impact of inflation on earnings
£0
-£1
-£3
-£3
-£4
Overall weekly gain or loss after measures and cost of living
-£13
-£8
-£4
£1
£7
Note all five families lost £20-a-week in October 2021, due to the cut in the Universal Credit Standard Allowance, so all are worse-off than they would have been in September 2021. All workers are assumed to be paid at the National Living Wage rate, so benefit from its increase.
New £560 million Multiply programme to be launched providing personalised maths coaching for up to half a million people across the UK.
Transformational numeracy scheme will transform the lives of some of the 8 million adults in England who have numeracy skills lower than those expected of a 9-year-old.
Funding to be channelled through the new £1.5bn UK Shared Prosperity Fund – which replaces a pot of money previously divvied up and distributed by the EU and means the government can target funding where it is needed most.
A TRANSFORMATIONAL £560 million scheme to improve the maths skills of hundreds of thousands of adults across the UK is set to unveiled by the Chancellor next week.
At Wednesday’s Budget and Spending Review, Rishi Sunak will announce that up to 500,000 people will benefit from Multiply with improved basic numeracy skills through free personal tutoring, digital training, and flexible courses.
More than 8 million adults in England have numeracy skills lower than those expected of a 9-year-old with the North East, West Midlands and Yorkshire and the Humber worst affected. And by the age of 30, people with poor numeracy skills are more than twice as likely to be unemployed as their peers.
According to research, improving numeracy skills can increase your pay cheque by 14%, and reduce joblessness by half – boosting the economy and changing lives.
Chancellor of the Exchequer Rishi Sunak said: “Better maths can mean a better job and a bigger pay packet. Multiply will help people develop new skills and create opportunities.”
Sam Sims, Chief Executive of National Numeracy said: “Low numeracy blights lives, holding millions of people back from fulfilling their potential and it comes at a huge cost to the economy.
“We need solutions that reach and engage people with low numeracy to build confidence with numbers as well as skills, as a steppingstone to further learning and opportunity.
“National Numeracy is delighted with the announcement of the government’s new ‘Multiply’ scheme, which promises to help improve the numeracy of hundreds of thousands of people.”
Launching in the Spring, Multiply will give people who don’t have at least a GCSE grade C/4 or equivalent in maths access to free new flexible courses to improve their maths.
It will also include a new website with bitesize training and free one-to-one online tutorials to help hundreds of thousands of people improve their maths in every part of the United Kingdom.
The programme will be funded through the new UK Shared Prosperity Fund, which replaces the EU’s Structural Funds, which were previously divvied up and distributed by the EU.
Funding for the UKSPF will increase to £1.5bn per year, meeting the Government’s commitment to level up all parts of the UK. The Multiply scheme is the first step of the new Fund, with further investment provided for Scotland, Wales and Northern Ireland.
Rather than the EU’s scatter gun approach, the UK Shared Prosperity Fund will ensure the UK Government can target funding where it is needed most – through schemes like Multiply which will help level-up the UK.
Secretary of State for Scotland, Alister Jack said: “The UK Govt made a clear commitment to maintain Scotland’s level of funding following the vote to leave the EU and we have delivered on that promise.
“This is good news for communities across Scotland who will continue to benefit from a range of important projects. Going forward, new arrangements will allow us to deal directly with communities ensuring money is spent on projects that matter most to the people of Scotland.”
Chancellor expected to confirm £700 million to improve sports and youth clubs.
Up to 8,000 state-of-the-art sports pitches to be built or improved across the UK to ensure every young person has a chance to take up sport.
Hundreds of youth facilities to be built or refurbished across England and the National Citizen Service to continue helping young people to build confidence and leadership skills outside of school.
As part of the government’s drive to level up the country, local communities will benefit from a £700 million wave of investment in football pitches, tennis courts, and youth facilities to help build the next generation of young talent, the Chancellor is expected to announce next week.
Following on from England’s roaring success at the Euros (Eh? – Ed.) and Emma Raducanu’s US Open victory, Rishi Sunak is set to announce new funding to build or improve up to 8,000 state-of-the-art sports pitches in villages, towns, and cities across the UK, as well as supporting a range of projects, including new clubhouses and community buildings.
This sits alongside the government’s commitment to refurbish more than 4,500 tennis courts across Great Britain.
Up to 300 youth facilities, which could include scout huts, youth centres and activity centres, will also be built or refurbished in the most deprived areas, and funding will be committed to continue the National Citizen Service until 2024/25 – which provides 16-17 years olds from all backgrounds the opportunity to mix with their peers outside of school.
Chancellor of the Exchequer, Rishi Sunak said:“We’re backing the next generation of Ward-Prowses and Raducanus, not just sporting stars, but inspiring young leaders. Sports can be a fantastic way for young people to make friends and learn skills they’ll use for the rest of their lives – leadership, teamwork, and determination.
“This funding will level up access to sport and social clubs for youngsters ensuring they can get together and play the games they love most.”
Nadine Dorries, Secretary of State for Digital, Culture, Media and Sport said:“I want every young person, no matter where they’re from, to have the chance to get the best start in life and achieve success.
“This £700 million investment is a downpayment on our commitment to open doors for those who have been shut out. It will give young people the pitches and clubhouses they deserve to reap the benefits of sport and youth groups and help level up the country for the next generation.”
Robert Sullivan, Football Foundation Chief Executive Officer, said:“This investment is welcome news for all those involved in grassroots football across the country.
“We know that playing on good quality facilities helps people get fitter, improves mental wellbeing, grows confidence and builds stronger relationships. This is all essential for individuals and communities as we emerge out of the Covid-19 crisis.
“With the government, Premier League and The FA’s investment, we have made plenty of progress in the last two decades, but there is still lots of work to do to ensure all communities across England get the standard of local sports facilities they need and deserve.
“This new funding will unlock the power of even more pitches to help transform people’s lives.”
Mark Bullingham, Chief Executive of The FA said:“This investment into grassroots football pitches and multi-sport facilities is fantastic news for communities throughout the country.
“It will help the nation get active as we emerge from the impact of Covid. This is an important part of the Government’s £550m commitment to transform our grassroots football infrastructure, which will have a massive social and economic impact”.
Tim Hollingsworth, CEO of Sport England said:‘We welcome the government’s decision to continue to invest in our young people and provide vital funding to support the facilities we need to enable sport in our communities.
‘There has never been a more important time to get the nation active and give people the opportunity to play sport, no matter their background.’
The government is investing £173 million to fund the continuation of the National Citizen Service in England; £368 million to fund up to 300 youth centres across England; and £155 million additional funding is being provided to invest in multi-use sports pitches and facilities throughout the UK.
DCMS will also receive a further £20 million to invest in youth services in England and the government will set out more detail in due course.
This builds on the government’s commitment to sport, having announced £50m of UK sports facility funding in July, as part of our ambition to ensure that you are never more than 15 minutes away from a high-quality pitch; and is in addition to the £30 million investment to refurbish more than 4,500 tennis courts across Great Britain; and the £25 million provided by the Chancellor for grassroots sports facilities throughout the UK at Spring Budget 2021.
The UK Government’s Plan for Jobs is also helping young people find new opportunities and better paid work; the government recently announced a £500 million extension of its supported schemes – targeted at young workers – including extensions to the Kickstart scheme, Job Entry Targeted Support Scheme, and the £3,000 incentive payment for businesses to hire apprentices.
More than one million workers came off furlough in the four weeks between the end of April and the end of May, which coincided with the start of restrictions being lifted and non-essential retail, restaurants and pubs reopening.
Latest government statistics show more than one million workers came off furlough in May alone
Milestone moment as the lowest amount of people on furlough since the pandemic began
Comes as scheme begins to wind down ahead of closure in September
More than one million workers came off furlough in the four weeks between the end of April and the end of May alone, which coincided with the start of restrictions being lifted and non-essential retail, restaurants and pubs reopening.
New figures published today show 2.4 million people moved off the scheme between the end of February and the end of May as businesses reopened.
2.4 million people remain furloughed or flexi-furloughed down from a peak of nearly 9 million at the height of the pandemic in May last year.
Chancellor of the Exchequer Rishi Sunak said: “Our Plan for Jobs has supported people’s jobs and livelihoods throughout the pandemic and it’s fantastic to see so many people coming off furlough and into their workplaces with our restaurants, pubs and shops reopened.
“These figures show what we always hoped would happen – that the scheme is naturally winding down as the economy reopens, but continuing to support those businesses and employees that need our help.”
Today’s ONS Business Impact of Covid-19 Survey show numbers may have fallen even further – with estimates that between 1.3 and 1.9 million people are still on furlough.
These figures reinforce other positive signs about how the recovery is progressing. The number of employees on payroll is at its highest level since last April, business and consumer confidence have improved significantly and economic growth is outperforming expectations.
The figures show the largest reduction in the hospitality, retail and accommodation sectors, with nearly 180,000 people in pubs, bars and clubs alone returning to work between April and May.
Furlough was extended until September to allow for businesses to adjust after the end of the Roadmap and to bring people back to work.
Now, as the economy begins to reopen and demand returns, employers are being asked to contribute more and from today, they will contribute 10% towards the cost of paying for unworked hours.
This employer contribution will increase to 20% in August and September, before the scheme closes, with the Plan for Jobs still in place to provide support, including traineeships and more work coaches to help people find jobs.
New statistics for the Self Employment Income Support Scheme, also published today, show more than £25bn has been claimed to date in support for the self employed.
350,000 properties have paid no business rates for 15 months thanks to an unlimited rates relief between March 2020 and July 2021. Over 90% of businesses will now be able to benefit from a 66% reduction in business rates bills until March 2022.
Scotland has benefitted from £14.5 billion of UK government funding to the devolved administrations, figures released today by the Treasury show.
The annual publication of the Block Grant Transparency shows that since the start of the Covid-19 pandemic the Scottish Government has received an additional £14.5 billion, the Welsh Government an additional £8.6 billion and the Northern Ireland Executive an additional £5.0 billion.
This funding has enabled the Scottish Government to provide support to individuals, businesses and public services across Scotland in response to Covid-19 and will continue to support the recovery through 2021-22.
This comes as part of the unprecedented package of support for the whole of the UK throughout the pandemic, with £352 billion spent right across the UK on Covid-19 measures.
In Scotland this included protecting more than 900,000 jobs through the furlough scheme, £294 million in self-employment support, help for businesses and the procurement of vaccines.
Chief Secretary to the Treasury Steve Barclay said:“The UK government is fully committed to strengthening the Union and making sure Scotland has the funding needed to get through this pandemic, with £14.5 billion of additional spending over the last year.
“We’ve protected more than a million Scottish jobs and businesses with furlough and support schemes, our vaccine rollout is unlocking the economy, and our Plan for Jobs is levelling up opportunity and helping us build back better across the UK.”
Scottish Secretary Alister Jack said:“From the very start of the pandemic, the UK Government has taken unprecedented action to help people and businesses right across the country.
“That includes our furlough scheme, support for self-employed people, help for businesses, and the hugely successful UK-wide vaccine programmes.
“On top of this direct support, the UK Government has provided an additional £14.5 billion of funding for the Scottish Government.
“This extensive support, which now enables us to look towards recovery, shows how Scotland benefits from being part of a strong United Kingdom. Never has the value of the Union been more important or more apparent.”
The UK government’s Plan for Jobs is helping to support, create and protect jobs across the UK.
The Kickstart scheme is already helping thousands of 16-24 year-olds into work, JETS Scotland is providing up to six months of targeted support and 13,500 new Work Coaches have been recruited to give tailored support to people out of work.
Treasury’s ‘£17bn mistake’ that will take “generations to resolve”
In its report published today the Public Accounts Committee says HM Treasury has “done little to identify and manage the stark differences in average pensions between genders and other groups” and “should have foreseen the age discrimination issue that gave rise to the 2018 McCloud judgment”.
In 2011 and 2015 the Treasury introduced reforms aimed at making public service pensions more sustainable and affordable, but a 2018 Court of Appeal judgement (the McCloud judgement) ruled parts of the reforms unlawful.
The Treasury now wants pension scheme members to pay the estimated £17 billion cost to put that right, despite the unlawful reform having been “its own mistake – a mistake which could have been avoided by listening to advice and which will take many decades to resolve.”
Around 25% of pensioners and 16% of the working-age population are members of one of the four largest public service pension schemes covering the armed forces, civil service, NHS and teachers. The schemes are almost all unfunded, meaning retirees’ pension benefits are paid out of current workforce contributions.
The Committee saw “evidence of public service pensions issues affecting delivery of frontline services, and independent schools opting out of pension schemes because of increasing costs”.
It says HM Treasury doesn’t have the data it needs nor evaluated the impact of its reforms, or whether they are achieving its pension policy objectives – the PAC is “not convinced it is on track”.
The Treasury also seems “unconcerned about the drop in enrolment by some workers”. The Committee warns on the “a danger of a perfect storm where some young people believe they cannot afford pension contributions because of high costs of living and retire with a reduced public sector pension as a result.
Many younger workers will continue to pay rent in retirement because they cannot afford to buy a home and the cost of supporting this generation will fall on future taxpayers”.
Meg Hillier MP, Chair of the Public Accounts Committee, said: “The Treasury’s £17 billion mistake on pensions reform is a ripple compared to the tsunami of costs to the public purse if Government fails to address the growing number of young people unable to afford to plan for a proper pension.
“It’s lack of curiosity about why nearly a quarter of a million workers are not joining these pension schemes is a concern. Pension planning must be long term; mistakes and poor planning have an impact for decades. Short term cost savings can become long term costs to individuals with lower retirement incomes and the taxpayer who may end up supporting them.”
