Government

Is it right that public sector workers suffer for government mistakes?

No matter how the government and various political parties attempt to wrap up the issue of public-sector pensions there is no doubt that public sector workers will suffer one way or another because of decisions made by previous governments. While it is easy to place all of the blame at the doorstep of the Labour Party the truth is that previous governments also played their part. But is it right that public sector workers need to suffer because of government decisions in the past?

It seems blatantly unfair that public sector workers, who were promised a specific remuneration package when they signed up, are likely to see these particular pension arrangements withdrawn over the next few years. At best they can expect a small increase in contributions and a longer working life and at worst they are likely to see their final pensions calculated using average earnings throughout their career.

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Tags: Government, Public Sector, Public Sector Workers, Sector Workers

Friday, October 8th, 2010 Financial Glossary No Comments

Is PFI coming back to haunt the government?

While the Conservative government initially created the idea of the Private Finance Initiative (PFI) there is no doubt that this particular initiative flourished under the former Labour government. However, there are major concerns as the short-term cost savings from many PFI projects are turning into long-term liabilities for departments such as the NHS and Education.

A recent report suggested that PFI projects with regards to the NHS could cost upwards of £50 billion more than the initial cost of the project. This is around four or five times the initial cost of the projects and is simply a consequence of long-term contracts entered into to run these particular establishments. While there’s no doubt that PFI has allowed many projects to be brought forward by the UK government that may well have long-term consequences for funding in the future.

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Tags: Government

Friday, August 13th, 2010 Financial Glossary No Comments