Taxpayers face '£9bn extra a year' public sector pension bill

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The future cost of public pensions could cost the taxpayer an extra £9bn a year from 2020.

According to experts at the Centre for Policy Studies (CPS), the government has underestimated the expected cost of state pension reforms. Its original figure of £1,230 per household is likely to be about £1,600 per household per year, the think-tank said. This will make the future burden to the taxpayer as much as £41bn a year from as early as 2020. The £9bn of additional costs has primarily arisen because of a "toxic tangle" between two pension proposals currently before parliament: the Public Service Pensions Bill and the Department for Work and Pensions (DWP) white paper on the si...

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