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Hutton signals end to final salary pensions

10th March 2011

Public sector workers could be stripped of their final salary pensions following proposals from former Labour cabinet minister Lord Hutton.

The final report of the government commissioned Independent Public Services Pension Commission, chaired by the Blairite former defence secretary, concludes that final salary public service pension schemes should be replaced by a system where an employee's pension entitlement linked to their career average earnings.

Lord Hutton, who has been criticised by some former Labour colleagues for working with the coalition, said the proposals struck a balance between public service workers and the taxpayer.

"They will ensure that public service workers continue to have access to good pensions, while taxpayers benefit from greater control over their costs," he said.

Business in the Commons today will be dominated by the debate on UN women scheduled by the backbench business committee to coincide with this weeks international women's day.

Not everyone is happy with the however, as the backbench committee cancelled a planned debate on the future of coastguard services.

SNP Westminster Transport spokesperson Angus MacNeil branded the postponement of the debate "disgraceful" and said committee had treated the issue of life and death with "utter disregard".

The debate will follow questions to transport secretary Phillip Hammond, ministers representing woman and equalities issues and Sir George Young, the leader of the House of Commons.

Also today Labour MP Chris Bryant will introduce a debate on phone hacking, a week after Lord Prescott and fellow Labour MP Tom Watson accused other News International titles including the Times newspaper of engaging in illegal practices. News International has strongly denied the claims.

Former Tory party chairman Lord Patten will face a pre-appointment hearing in front of the culture committee this morning as he takes up his post as chair of the BBC Trust.

And over the other side of the parliamentary estate cabinet secretary Sir Gus O'Donnell will give evidence to the political and constitutional reform committee on his Cabinet Manual, which many have warned represents a creeping written constitution.

As protests continue across the Middle East the House of Lords foreign affairs committee will hear from the ambassador of Sudan.

Peers are also set to vote on a motion approving the use of electronic devices in the Lords chamber, following a recommendation from a Lords committee.

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