Millions Face Higher Council Tax To Plug Pension Hole
Millions of Britons face higher council tax bills to cover the £60bn hole in local government pensions.
Figures obtained under freedom of information show councils’ pension deficits have nearly trebled as a result of the recession, the Daily Mail reports.
Council tax bills next April will depend in part on a calculation of the size of the pensions deficit, due in March. The last survey in 2007 found the deficit was as high as £23bn, with 83 out of 87 local governments showing a shortfall.
Since then one in ten funds has conducted a new valuation which show deficits have grown by more than 280% on average - in part due to stock market falls.
If this is replicated across all pension funds, next year’s valuation by the Government will show a deficit of more than £60bn in the scheme part-funded by employer contributions.
The deficit is equivalent to £2,608 for each of the 23 million council tax-paying households in England and Wales.