Sir, Eight years ago the Labour Government appointed Frank Field to “think the unthinkable” in relation to pensions. He did and was dismissed. Two weeks ago the Government made an abrupt about-turn on its decision concerning the pensions of public sector workers. This week it looks as though it is to shelve the long-awaited report on pensions (report, Nov 25).

For the benefit of future generations the Government must have the courage to grasp the nettle and deal with this looming crisis once and for all.

R. G. STONE
Beeston, Notts

Sir, Sir Digby Jones claims that the Treasury has told him he is not wasting his time in attacking the recent public sector pensions deal (report, Nov 25). I can assure him that he is. What we secured from the Government was a commitment to observe the contracts made with public sector workers, and maintain their existing pension arrangements. It is offensive to workers, many of whom qualify for a pension of less than £5,000 a year, to tell them their pensions cannot be afforded.

We did not win this agreement by virtue of a special relationship with the Labour Government, as Sir Digby asserts. We won it by standing together and being prepared to take action to defend our members’ pensions. Anyone who believes that we would not do so again if the agreement was threatened is deluding himself.

MARK SERWOTKA
General Secretary, Public & Commercial Services Union,
London SW11

Sir, The irony of the Chancellor’s commentary on the affordability of pension reform would be laughable were the consequences of his tinkering not so serious. This Chancellor has done more than any other to heighten the angst of those of impending retirement age. It was exactly his desire to spend beyond his means, which led to the decision to tax the returns on pension investments in his first budget — a taxation which deprives pensioners of £5 billion per year. I am glad I have a few years left to save.

EDMUND GEMMELL
Munich, Germany

Sir, The Chancellor thinks that it would be unsustainable to link pensions to incomes. Revenue, in the form of income tax and national insurance, does have this link, so why not benefits in the form of pensions?

DR RICHARD BLOORE
Twickenham

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