What assessment has the Cabinet Secretary made of the impact of public sector employers contributions to public sector pensions on the sustainability of budgets?
Answered by Cabinet Secretary for Finance and Welsh Language
| Answered on 15/01/2025
There have been increases in employer pension contributions for public sector pensions in recent years, including as a result of changes to the discount rate for unfunded pensions scheme affecting the Superannuation Contributions Adjusted for Past Experience (SCAPE). These increases have put additional pressure on public spending which has been tightly squeezed by 14 years of austerity. Additional funding to address the impact of changes to SCAPE has been provided in 2024-25 and baselined in the 2025-26 Draft Budget.