FDA welcomes pensions concessions for higher earners in the budget - 18 March 2004

The FDA, which represents senior civil servants, welcomed the moves made by the Chancellor in yesterday's budget to increase the lifetime earnings cap to £1.5 million. The FDA had joined with other unions representing senior staff to raise concerns at the original proposals, which would have seen a cap of £1.4 million and indexation to the retail prices index.

John Merson, the FDA's pensions officer, said: "We welcome the moves by the chancellor to address our concerns on behalf of our members, and welcome the increase in the cap to £1.5 million and the undertaking on future indexation which would see the level rise to £1.8 million by 2010." "Despite the bad news elsewhere in the budget for civil servants, this shows that the Chancellor has at least listened to the issues that we raised on behalf of our members, both in relation to the original cap level and also its indexation. Had he not done so many of our members would have been caught by this limit in the future."

Ends

Notes for Editors
1. The FDA is the trade union and professional body representing the UKs 11,000 senior civil and public servants. Our members include policy advisors, senior managers, tax inspectors, economists, statisticians, accountants, special advisers, government lawyers, crown prosecutors and NHS managers.

2. For further information contact: