UK govt pension liabilities surge £1.3trn in 3 years
The UK government’s pension liabilities have risen 22 per cent in three years, raising questions about the sustainability of public pension schemes.
According to figures from the Office for National Statistics, published yesterday (February 8), the government’s pension liabilities had surged by 22 per cent between 2015 and 2018, to £6.4tn.
State pension liabilities amounted to £4.8tn, or 224 per cent of gross domestic product.
Unfunded public sector defined benefit scheme liabilities stood at £1.2tn, or 55 per cent of GDP, while funded public sector DB schemes amounted to a more modest £413bn, or 19 per cent of GDP.
However, changes to the discount rate make direct comparisons difficult. The rate was lowered from 5 per cent to 4 per cent, in line with Eurostat requirements, which the report stated was chiefly responsible for the increase in total government pension liabilities.
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