Government reveals public sector pension overspend
Public sector pensions overpayments since 1978 exceed £120 million, the government has admitted.A minister has also said that claiming back the money would not be possible for cost reasons.Payments to workers such as NHS doctors and civil servants are included in the total.Some pensions are to be reduced from the start of the new financial year next April as a result of the finding.Liam Byrne MP, minister for the cabinet office, commented: "Some pensioners will have their payments reduced and others will see increases in their payments in 2009 which are less than the annual inflation uprating."He added: "The advice of the accounting officers of the schemes is that it is unlikely to be cost-effective to attempt recovery of these monies from individuals."News of the pensions reductions has yet to be given to the retirees affected.Public sector pensions in the UK hold estimated deficits exceeding £900 billion.
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The Chancellor the Exchequer, Alistair Darling, today reported a £245 million package to help UK businesses through what has been the most challenging trading environment in living history. He placed himself in the position of the saviour of the UK economy and UK businesses, offering relief which will obviously assist many in the short term, but what is the real underlying position? While ther...Read More
Alex Salmond hits more turbulence with local income tax project
Alex Salmond's flagship policy of a local income tax in Scotland has come under further pressure with a number of new organisations appearing with severe criticism for the idea. The likes of the Ministry of Defence and Help the Aged have stepped forward with a number of queries and suggestions as to why the local income tax plan will not work. Aside from the legality of the plan there are grave co...Read More
David Miles raises hopes for UK economic recovery
David Miles, the new incoming member of the Monetary Policy Committee (MPC) at the Bank of England, would appear to have hit the ground running with a suggestion that signs are emerging that the UK recession could be over. This announcement follows the recent upbeat theme of late from the Bank of England, the UK government and a number of reports on the UK economy. But are we started to get carrie...Read More
Insurance fraud hits new highs in the UK
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Pension U-Turn Is Broadly Welcomed
As we covered some days ago, the UK Treasury had been looking to back date a new and controversial tax on small pensions in the UK. The move is set to hit over 420,000 people who have retired, many of whom had not expected to pay any tax on their small pension payments. Initially the move was to be back dated to 2007/8 but it will now start in the current tax year, 2008/09.