Maude and his Cabinet friends give their pensions a boost

FRANCIS Maude has pushed through reforms that will significantly increase Cabinet ministers’ gold-plated pensions.

The embattled Cabinet Office minister’s changes will give senior politicians – including himself – an extra £314 for every year of their retirement.

Under changes that came into force yesterday, Cabinet ministers must contribute an extra 2.4 per cent towards their final salary pension scheme. However, the complex way in which their pensions are calculated means their retirement hand-outs will soar.

Cabinet ministers will now contribute £229 more each year than if they were an ordinary MP. Tory MP Mark Reckless discovered that, in return, they will enjoy an extra £314 a year from their pensions payments. Over a 20-year retirement period, the payouts will represent a £ ,280 increase for former Cabinet ministers. Mr Reckless said: ‘For the country as a whole, the Prime Minister and Chancellor are keen for those with the broadest shoulders to make bigger sacrifices so as to lighten the load for those who are paid less. However, there is a different approach nearer home.’

Cabinet ministers, who receive an extra £ 8,827 on top of the basic MP salary of £ 5,738 a year, will receive bigger pensions because the equation to calculate how much they receive involves dividing their ministerial contribution by their contribution as an MP.

A Cabinet Office spokesman said actuaries were looking into the figures.