A committee of MPs has criticised the government's formulation of public sector pension policy.

The public accounts committee says a key feature of changes announced three years ago has yet to start. Known as "cost-sharing and capping", it has been delayed with no firm implementation date. The MPs say this undermines government claims that the cost of pensions for civil servants, NHS staff and teachers will be cut substantially.
'On hold'

The Treasury told the MPs that changes brought in during 2007-08 would limit the cost of these three big pension schemes over the next 50 years to 1% of the UK's GDP.

That would lead to a saving of £67bn over that time, which the committee said would be a significant achievement. However, about 60% of that predicted saving was due to come from cost-sharing and capping.

The policy would involve putting a ceiling on any further increase in pension costs to employers, which would lead to a big increase in staff contributions, or a cut in their........Read more HERE