Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Latest NewsPay & benefitsPensions

Pensions for top earners cost taxpayers more than public sector ones, says TUC report

by John Charlton 9 Sep 2009
by John Charlton 9 Sep 2009


For every pound that taxpayers spend on public sector pensions, they dole out £2.50 in subsidising the pensions of the richest 1%, according to a TUC report.



Decent Pensions for All claimed that 60% of tax relief on pensions goes to higher rate taxpayers – those paying 40% – including 25% that goes to the top 1% of earners, defined as those earning more than £150,000 a year.


The TUC says this means that tax relief on pension payments made by the top 1% of earners costs the public purse “nearly £10bn a year”, compared to the £4bn a year it costs to fund the pensions of retired public sector employees such as nurses and civil servants.


A TUC spokesman said its calculations were based on Treasury figures.


The document sets out TUC opposition to cuts in public sector pensions. It said: “One of the standard arguments from those who attack public sector pensions is to ask why modest taxpayers who do not have a pension should pay for the pensions of public sector staff.


“A much better question is whether taxpayers are happy to spend £2.50 on reducing the tax bill of the top 1|% of the population for every pound going towards providing a modest pension to retired nurses, teachers and other public sector staff.”


The TUC claimed that the average public sector pension is £7,000, but most pensioners get less than £5,000.


TUC general secretary Brendan Barber added: “The real pension crisis is the growing numbers of workers in the private sector without any kind of pension, who are now paying almost £10bn a year to subsidise the richest 1% of the population.”


Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

The TUC spokesman said it was impossible to say how much the upping of the top tax rate to 50% in April 2010 would impact pension tax relief.


He added that the organisation will publish a report on Friday highlighting company directors’ pension arrangements. He said there was evidence of a rise in lump sum cash payments by companies into directors’ pension pots.

TUC
John Charlton

previous post
Cyber-bullying: Legal Q&A
next post
Poor foreign language skills will hamper UK economic growth

You may also like

MPs demand Home Office tighten visas to protect...

4 Jul 2025

100% success for latest large-scale four-day week trial

3 Jul 2025

NHS 10-year Health Plan sets out vision for...

3 Jul 2025

Microsoft to cut 9,000 jobs globally as role...

3 Jul 2025

Decline in workplace deaths: falls from height remain...

3 Jul 2025

How can HR prepare for changes to the...

3 Jul 2025

Data skills gap getting in way of AI...

3 Jul 2025

Top 10 HR questions June 2025: Redundancy consultation

2 Jul 2025

Aircrew with cancer pursuing MoD for compensation –...

2 Jul 2025

Living wage pushes up spring pay settlements

2 Jul 2025

  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+