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Tackling the 'pensions apartheid'

Tim Iredale|18:22 UK time, Friday, 25 June 2010

John Hutton c/o PA Images

Many people in Yorkshire and Lincolnshire are already retired and living on public sector pensions. But will the current crop of council workers, civil servants and NHS staff enjoy a similar level of income when they retire?

According to the Office for Budget Responsibility, the cost of providing public sector pensions will double over the next five years from £4bn currently to £9bn by 2015.

The coalition government believes public sector pensions are not sustainable at the current rate and the former Labour cabinet minster John Hutton has been asked to look into ways of reducing the burden on the taxpayer.

Some commentators talk about a 'pensions apartheid' - with many public sector workers retiring at 60 on gold-plated pensions and their private sector counterparts being forced to work longer with a much lower income to look forward to when they retire.

However, the trade unions say they'll oppose any shake-up of pensions. Yorkshireman Dave Prentis, who is the general secretary of UNISON, believes the vast majority of public sector workers are low paid staff who receives on average around £54 a week.

So expect a fierce debate over the next few months on cuts to public sector pensions with claims from some that the bin man will lose out to the banker.

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