Liabilities at mercy of interest rates

Public sector pensions position explained

Government's liabilties for public sector pensions is at the mercy of the varying interest rates.

Liabilities were recently stated at being just over £3 billion pounds.

Yet only two years ago this figure stood at £2 billion.

Speaking on Present Politics, Treasury Minister Eddie Teare says whilst his major concern is cash flow - not just the capital amounts - interest rates make a massive difference.