Downing Street Says » Senior Salaries Review Body

» Tuesday, January 16, 2007

Senior Salaries Review Body

Asked for details on the response to the Senior Salaries Review, the Prime Minister’s Spokesman (PMS) replied that formally we would publish the report, and the Leader’s Office would publish the response around the same time.

Asked what the Government’s position was on whether there should be restraint on the pensionable salary as opposed to the headline salary, the PMS replied that these issues were a matter for Parliament and more generally we should wait for the Government’s response to the Senior Salaries Review Body this afternoon.

Asked if the response would cover all the categories of the Senior Salaries Review, the PMS replied that the report this afternoon was on MPs’ pay and allowances. Asked about other senior salaries, the PMS replied that they were subject to a different process.

Asked if Harriet Harman would address the pensionable salary issue, the PMS replied that it was best to wait for the response this afternoon, but most of the focus of the debate so far had been on the salary question.

Asked for the Prime Minister’s response to David Cameron’s suggestion that final salary pension scheme for MPs should be closed, the PMS replied that he thought it was a proposal that had been put forward, but we did not have any particular response on that at the moment.

Put that it had been claimed that by 2009 an individual working in the private sector would actually be paying more into maintaining public sector pensions than they will into their own pension schemes, the PMS replied that there was a claim to that effect. The Government made a big reform to public sector pensions a couple of years ago which reduced the public liability by something in the order of £13 billion. Asked if we were saying then that this was not true, the PMS replied that he was sure that somebody in the Treasury would be able to give an expert view on this, but the general position was that we were reforming public sector pensions and as a result of these reforms the future liability to the taxpayer was coming down.

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