04.11.14
Treasury says public sector pensions are ‘welfare’, other pensions are not
The Treasury has been accused of pumping out “propaganda” in its Annual Tax Summary breakdowns. By combining unemployment and sickness benefits with public sector pensions under the general heading ‘welfare’, the letters are “party political propaganda masquerading as neutral information” according to the TUC.
The charts being sent out by the Treasury include ‘state pensions’, but analysis of the figures shows that public sector pensions are included under the ‘welfare’ heading, distorting it significantly. The ‘welfare’ tab also includes other items of ‘social protection’, which includes spending on personal care services.
The Treasury’s own figures do not normally conflate the statistics in this way.
Labour markets researcher Declan Gaffney, who helped uncover the change, called the charts “misleading”.
The below chart was shared by Michael O’Connor, claiming to be a more accurate tax breakdown:
TUC general secretary Frances O'Grady said: “The chancellor is relying on the fact that many people think spending called welfare all goes to the unemployed.”
The Treasury claims the distorted chart (top image) helps make the summary “easier to understand”.
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