Is David Cameron right to attack public sector pensions?

Over the last couple of days we have seen some momentous decisions regarding public sector pensions which on the surface appear fairly innocuous but will have major consequences for those working in the public sector. Some doomsday scenarios suggest that by changing the inflation index from the retail price index to the consumer price index some public sector workers could see their pension payments reduced by up to 25% in the long-term. So is David Cameron right to attack public sector pensions?

The problem with public sector pensions is the fact that liabilities for UK taxpayers have increased significantly over the last 20 years. This is an issue which was swept under the carpet by many previous governments who continued to invest heavily into the public sector, thereby creating more jobs and more prosperity for the country. However, a reduction in investment returns, longer life expectancy for the UK population as a whole and a funding shortfall which continues to grow have all led towards a potentially enormous liability for UK taxpayers in the future.

While there will obviously be discomfort, anger and pain for many in the public sector, David Cameron has been left to pick up the pieces of a situation which has been brewing for some time.