Thursday 10 March 2011
Public Pension Reform
The Hutton report is making some very sensible suggestions about how we move the Country to a place where we can actually make affordable promises to people about their pensions. The current system in the public sector is clinging to is unaffordable so will never be delivered in 10-20 years time. It will be too expensive and worst case will drive the country to default or some kind of old vs young civil war (see this post from the very early days of this site).
However, to discuss this reform in 2011 is madness. With the slight slowdown in public sector spending causing the media to whip people into a frenzy and an admirable approach to changing benefits and getting people back to work, the Government has enough problems. No mention either another potential plan, of reducing the crazy taxes Gordon brown put in place which ruined private sector pensions and made the disparity ever more stark.
This issue is going to make the Unions go even more nuts. Of course, the problem will have to be addressed, but this is surely a 2014 or even second term matter. Trying to do everything at once is a sign inexperience and this one will come to a sticky end.