Efficiency Briefing: Number 1

David Cameron and Nick Clegg: The cost of their recently appointed special advisers’ pensions

“So can we really ask them to keep paying their taxes into unreformed gold-plated public-sector pension pots? It’s not just unfair, it’s not affordable.” Nick Clegg, 14 June 2010 

Tom Watson MP

Efficiency Briefing: Number 1

Introduction

Last Thursday, after a dismal performance in the chamber by Danny Alexander earlier in the week, the government caved into pressure and published the salary list of their newly appointed special advisers.

As well as showing a startling increase in the number of spin doctors working out of number 10, the publication showed that chief spin doctor Andy Coulson had been awarded a salary greater than that of the deputy prime minister.

What the publication didn’t show you was that on top of a £140K pay packet, Coulson is automatically entitled to a civil service pension – the same pension arrangements that Nick Clegg described yesterday as “gold plated…unfair…[and]…not affordable”. So on top of his £140K, the taxpayer could fund another £27,160 per year towards Mr Coulson’s retirement. 

You have to look deep into the model contract for the employment of special advisers to see that the Tory special advisers are entitled to be automatically enrolled in the Nuvos civil service pension scheme. I’ve taken advantage of the new age of transparency to make freedom of information requests to every department to confirm that all special advisers have taken up this offer.

If you want to see the model contract, it can be found here.

 A secure, final salary scheme pension is part of the deal when you join the public sector, where wages are traditionally lower than the private sector. For all we know, George Osborne, David Cameron and Nick Clegg will rely on family trust funds to get them through the latter years of worklessness.

They won’t have to rely on a second pension to supplement their state pension. Yet millions of civil servants will rely on the pension and they’ll be shocked at the “do as I say not as I do” attitude of the new team in downing street.

A £4million pension hypocrisy

Clegg’s announcement yesterday failed to explain that the personal and political appointments that he and David Cameron have made in the previous month are likely to cost the taxpayer over £4 million in pensions alone during the lifetime of this parliament. 

Take a look at these figures to see the full breakdown.

The Cost of Clegg and Cameron’s Advisers

Department special adviser in post Payband Salary (£) Note Pension Contribution at 3.5% 19.4% of Earnings 40% tax relief on pension contributions Yearly Total paid by taxpayer (salary+ 19.4% pension contribution) Additional cost to taxpayer of pension contribution at 19.4% and tax take lost on pension relief at 40%
The Prime Minister Andy Coulson Within scheme ceiling £140,000.00   £4,900.00 £27,160.00 £1,960.00 £167,160.00 £29,120.00
The Prime Minister Edward Llewellyn Within scheme ceiling £125,000.00   £4,375.00 £24,250.00 £1,750.00 £149,250.00 £26,000.00
The Prime Minister Kate Fall PB4 £100,000.00   £3,500.00 £19,400.00 £1,400.00 £119,400.00 £20,800.00
The Prime Minister Jonny Oates PB4 £98,500.00   £3,447.50 £19,109.00 £1,379.00 £117,609.00 £20,488.00
The Prime Minister Gabby Bertin PB3 £80,000.00   £2,800.00 £15,520.00 £1,120.00 £95,520.00 £16,640.00
The Prime Minister Tim Chatwin PB3 £70,000.00   £2,450.00 £13,580.00 £980.00 £83,580.00 £14,560.00
Department special adviser in post Payband Salary (£) Note Pension Contribution at 3.5% 19.4% of Earnings 40% tax relief on pension contributions Yearly Total paid by taxpayer (salary+ 19.4% pension contribution) Additional cost to taxpayer of pension contribution at 19.4% and tax take lost on pension relief at 40%
The Prime Minister Steve Hilton PB3 £90,000.00   £3,150.00 £17,460.00 £1,260.00 £107,460.00 £18,720.00
The Prime Minister Polly Mackenzie PB3 £80,000.00   £2,800.00 £15,520.00 £1,120.00 £95,520.00 £16,640.00
The Prime Minister Henry Macrory PB3 £70,000.00   £2,450.00 £13,580.00 £980.00 £83,580.00 £14,560.00
The Prime Minister James O’Shaughnessy PB3 £87,000.00   £3,045.00 £16,878.00 £1,218.00 £103,878.00 £18,096.00
The Prime Minister Liz Sugg PB3 £80,000.00   £2,800.00 £15,520.00 £1,120.00 £95,520.00 £16,640.00
The Prime Minister Peter Campbell PB2 £60,000.00   £2,100.00 £11,640.00 £840.00 £71,640.00 £12,480.00
The Prime Minister Sean Kemp PB2 £60,000.00   £2,100.00 £11,640.00 £840.00 £71,640.00 £12,480.00
Department special adviser in post Payband Salary (£) Note Pension Contribution at 3.5% 19.4% of Earnings 40% tax relief on pension contributions Yearly Total paid by taxpayer (salary+ 19.4% pension contribution) Additional cost to taxpayer of pension contribution at 19.4% and tax take lost on pension relief at 40%
The Prime Minister Gavin Lockhart PB2 £52,215.00 Salary not provided, set at bottom of payscale £1,827.53 £10,129.71 £731.01 £62,344.71 £10,860.72
The Prime Minister Michael Salter PB2 £65,000.00   £2,275.00 £12,610.00 £910.00 £77,610.00 £13,520.00
The Prime Minister Rohan Silva PB2 £60,000.00   £2,100.00 £11,640.00 £840.00 £71,640.00 £12,480.00
The Prime Minister Sean Worth PB2 £52,215.00 Salary not provided, set at bottom of payscale £1,827.53 £10,129.71 £731.01 £62,344.71 £10,860.72
The Prime Minister James McGrory PB1 £40,352.00 Salary not provided, set at bottom of payscale £1,412.32 £7,828.29 £564.93 £48,180.29 £8,393.22
Deputy Prime Minister Lena Pietsch PB3 £80,000.00   £2,800.00 £15,520.00 £1,120.00 £95,520.00 £16,640.00
Deputy Prime Minister Richard Reeves PB3 £85,000.00 Takes up post with effect from 5 July. £2,975.00 £16,490.00 £1,190.00 £101,490.00 £17,680.00
Department special adviser in post Payband Salary (£) Note Pension Contribution at 3.5% 19.4% of Earnings 40% tax relief on pension contributions Yearly Total paid by taxpayer (salary+ 19.4% pension contribution) Additional cost to taxpayer of pension contribution at 19.4% and tax take lost on pension relief at 40%
Deputy Prime Minister Alison Suttie PB3 £80,000.00   £2,800.00 £15,520.00 £1,120.00 £95,520.00 £16,640.00
Deputy Prime Minister Chris Saunders PB2 £60,000.00   £2,100.00 £11,640.00 £840.00 £71,640.00 £12,480.00
First Secretary of State, Secretary of State for Foreign and Commonwealth Affairs Arminka Helic PB3 £70,000.00   £2,450.00 £13,580.00 £980.00 £83,580.00 £14,560.00
First Secretary of State, Secretary of State for Foreign and Commonwealth Affairs Denzil Davidson PB2 £52,215.00 Salary not provided, set at bottom of payscale £1,827.53 £10,129.71 £731.01 £62,344.71 £10,860.72
Chancellor of the Exchequer Ramesh Chhabra PB2 £60,000.00   £2,100.00 £11,640.00 £840.00 £71,640.00 £12,480.00
Department special adviser in post Payband Salary (£) Note Pension Contribution at 3.5% 19.4% of Earnings 40% tax relief on pension contributions Yearly Total paid by taxpayer (salary+ 19.4% pension contribution) Additional cost to taxpayer of pension contribution at 19.4% and tax take lost on pension relief at 40%
Chancellor of the Exchequer Rupert Harrison PB3 £80,000.00   £2,800.00 £15,520.00 £1,120.00 £95,520.00 £16,640.00
Chancellor of the Exchequer Eleanor Shawcross PB2 £52,215.00   £1,827.53 £10,129.71 £731.01 £62,344.71 £10,860.72
Chancellor of the Exchequer Poppy Mitchell-Rose PB1 £40,352.00 Salary not provided, set at bottom of payscale £1,412.32 £7,828.29 £564.93 £48,180.29 £8,393.22
Lord Chancellor and Secretary of State for Justice David Hass PB2 £69,266.00   £2,424.31 £13,437.60 £969.72 £82,703.60 £14,407.33
Lord Chancellor and Secretary of State for Justice Kathryn Laing PB1 £40,352.00 Salary not provided, set at bottom of payscale £1,412.32 £7,828.29 £564.93 £48,180.29 £8,393.22
Secretary of State for the Home Department & Minister for Women & Equality Fiona Cunningham PB2  £65,000.00   £2,275.00 £12,610.00 £910.00 £77,610.00 £13,520.00
Department special adviser in post Payband Salary (£) Note Pension Contribution at 3.5% 19.4% of Earnings 40% tax relief on pension contributions Yearly Total paid by taxpayer (salary+ 19.4% pension contribution) Additional cost to taxpayer of pension contribution at 19.4% and tax take lost on pension relief at 40%
Secretary of State for the Home Department and Minister for Women and Equality Nick Timothy PB2 £65,000.00   £2,275.00 £12,610.00 £910.00 £77,610.00 £13,520.00
Secretary of State for Defence Luke Coffey PB2 £60,740.00   £2,125.90 £11,783.56 £850.36 £72,523.56 £12,633.92
Secretary of State for Defence Oliver Waghorn PB2 £60,740.00   £2,125.90 £11,783.56 £850.36 £72,523.56 £12,633.92
Secretary of State for Business, Innovation and Skills Katie Waring PB1 £40,352.00 Salary not provided, set at bottom of payscale £1,412.32 £7,828.29 £564.93 £48,180.29 £8,393.22
Secretary of State for Business, Innovation and Skills Giles Wilkes PB1 £40,352.00 Salary not provided, set at bottom of payscale £1,412.32 £7,828.29 £564.93 £48,180.29 £8,393.22
Department special adviser in post Payband Salary (£) Note Pension Contribution at 3.5% 19.4% of Earnings 40% tax relief on pension contributions Yearly Total paid by taxpayer (salary+ 19.4% pension contribution) Additional cost to taxpayer of pension contribution at 19.4% and tax take lost on pension relief at 40%
Secretary of State for Work and Pensions Susie Squire PB2 £52,215.00 Salary not provided, set at bottom of payscale £1,827.53 £10,129.71 £731.01 £62,344.71 £10,860.72
Secretary of State for Work and Pensions Philippa Stroud PB2 £69,250.00   £2,423.75 £13,434.50 £969.50 £82,684.50 £14,404.00
Secretary of State for Energy and Climate Change Duncan Brack PB2 £67,000.00   £2,345.00 £12,998.00 £938.00 £79,998.00 £13,936.00
Secretary of State for Energy and Climate Change Joel Kenrick PB2 £52,215.00 Salary not provided, set at bottom of payscale £1,827.53 £10,129.71 £731.01 £62,344.71 £10,860.72
Secretary of State for Health Jenny Parsons PB2 £52,215.00 Salary not provided, set at bottom of payscale £1,827.53 £10,129.71 £731.01 £62,344.71 £10,860.72
Department special adviser in post Payband Salary (£) Note Pension Contribution at 3.5% 19.4% of Earnings 40% tax relief on pension contributions Yearly Total paid by taxpayer (salary+ 19.4% pension contribution) Additional cost to taxpayer of pension contribution at 19.4% and tax take lost on pension relief at 40%
Secretary of State for Health Vacancy   £20,176.00 Position to be filled. Salary rated at mid point of pay scale (£0-£40,352) Will almost certainly be considerably more £706.16 £3,914.14 £282.46 £24,090.14 £4,196.61
Secretary of State for Education Henry de Zoete PB2 £52,215.00 Salary not provided, set at bottom of payscale £1,827.53 £10,129.71 £731.01 £62,344.71 £10,860.72
Secretary of State for Education Elena Narozanski PB1 £40,352.00 Salary not provided, set at bottom of payscale £1,412.32 £7,828.29 £564.93 £48,180.29 £8,393.22
Secretary of State for Communities and Local Government Giles Kenningham PB2 £52,215.00 Salary not provided, set at bottom of payscale £1,827.53 £10,129.71 £731.01 £62,344.71 £10,860.72
Secretary of State for Communities and Local Government Sheridan Westlake PB2 £52,215.00 Salary not provided, set at bottom of payscale £1,827.53 £10,129.71 £731.01 £62,344.71 £10,860.72
Department special adviser in post Payband Salary (£) Note Pension Contribution at 3.5% 19.4% of Earnings 40% tax relief on pension contributions Yearly Total paid by taxpayer (salary+ 19.4% pension contribution) Additional cost to taxpayer of pension contribution at 19.4% and tax take lost on pension relief at 40%
Secretary of State for Transport Sian Jones PB2 £52,215.00 Salary not provided, set at bottom of payscale £1,827.53 £10,129.71 £731.01 £62,344.71 £10,860.72
Secretary of State for Transport Paul Stephenson PB2 £52,215.00 Salary not provided, set at bottom of payscale £1,827.53 £10,129.71 £731.01 £62,344.71 £10,860.72
Secretary of State for Environment, Food and Rural Affairs Simon Cawte PB2 £52,215.00 Salary not provided, set at bottom of payscale £1,827.53 £10,129.71 £731.01 £62,344.71 £10,860.72
Secretary of State for Environment, Food and Rural Affairs Will Littlejohn PB1 £40,352.00 Salary not provided, set at bottom of payscale £1,412.32 £7,828.29 £564.93 £48,180.29 £8,393.22
Secretary of State for International Development Philippa Buckley PB1 £40,352.00 Salary not provided, set at bottom of payscale £1,412.32 £7,828.29 £564.93 £48,180.29 £8,393.22
Secretary of State for International Development Richard Parr PB1 £40,352.00 Salary not provided, set at bottom of payscale £1,412.32 £7,828.29 £564.93 £48,180.29 £8,393.22
Department special adviser in post Payband Salary (£) Note Pension Contribution at 3.5% 19.4% of Earnings 40% tax relief on pension contributions Yearly Total paid by taxpayer (salary+ 19.4% pension contribution) Additional cost to taxpayer of pension contribution at 19.4% and tax take lost on pension relief at 40%
Secretary of State for Northern Ireland Jonathan Caine PB2 £69,266.00   £2,424.31 £13,437.60 £969.72 £82,703.60 £14,407.33
Secretary of State for Scotland Willie Rennie   £0.00 Unpaid £0.00 £0.00 £0.00 £0.00 £0.00
Secretary of State for Wales Vacancy   £20,176.00 Position to be filled. Salary rated at mid point of pay scale (£0-£40,352) Will almost certainly be considerably more £706.16 £3,914.14 £282.46 £24,090.14 £4,196.61
Secretary of State for Culture, Media, the Olympics and Sport Sue Beeby PB1 £40,352.00 Salary not provided, set at bottom of payscale £1,412.32 £7,828.29 £564.93 £48,180.29 £8,393.22
Secretary of State for Culture, Media, the Olympics and Sport Adam Smith PB1 £40,352.00 Salary not provided, set at bottom of payscale £1,412.32 £7,828.29 £564.93 £48,180.29 £8,393.22
Department special adviser in post Payband Salary (£) Note Pension Contribution at 3.5% 19.4% of Earnings 40% tax relief on pension contributions Yearly Total paid by taxpayer (salary+ 19.4% pension contribution) Additional cost to taxpayer of pension contribution at 19.4% and tax take lost on pension relief at 40%
Chief Secretary Will de Peyer PB2 £63,000.00 Salary not provided, set at bottom of payscale £2,205.00 £12,222.00 £882.00 £75,222.00 £13,104.00
Chief Secretary Vacancy   £20,176.00 Position to be filled. Salary rated at mid point of pay scale (£0-£40,352) Will almost certainly be considerably more £706.16 £3,914.14 £282.46 £24,090.14 £4,196.61
Minister without Portfolio Vacancy   £20,176.00 Position to be filled. Salary rated at mid point of pay scale (£0-£40,352) Will almost certainly be considerably more £706.16 £3,914.14 £282.46 £24,090.14 £4,196.61
Leader of the House of Lords, and Chancellor of the Duchy of Lancaster Flo Coleman PB0 £20,176.00 Salary rated at mid point of pay scale (£0-£40,352) £706.16 £3,914.14 £282.46 £24,090.14 £4,196.61
Department special adviser in post Payband Salary (£) Note Pension Contribution at 3.5% 19.4% of Earnings 40% tax relief on pension contributions Yearly Total paid by taxpayer (salary+ 19.4% pension contribution) Additional cost to taxpayer of pension contribution at 19.4% and tax take lost on pension relief at 40%
Leader of the House of Lords, and Chancellor of the Duchy of Lancaster Vacancy   £20,176.00 Position to be filled. Salary rated at mid point of pay scale (£0-£40,352) Will almost certainly be considerably more £706.16 £3,914.14 £282.46 £24,090.14 £4,196.61
Minister  for the Cabinet Office, Paymaster General Laura Trott PB2 £52,215.00 Salary not provided, set at bottom of payscale £1,827.53 £10,129.71 £731.01 £62,344.71 £10,860.72
Minister of State, Cabinet Office Martha Varney PB1 £40,352.00 Salary not provided, set at bottom of payscale £1,412.32 £7,828.29 £564.93 £48,180.29 £8,393.22
Minister of State (Universities and Science), BIS Nick Hillman PB2 £52,215.00 Salary not provided, set at bottom of payscale £1,827.53 £10,129.71 £731.01 £62,344.71 £10,860.72
Leader of the House of Commons and Lord Privy Seal Robert Riddell PB2 £52,215.00 Salary not provided, set at bottom of payscale £1,827.53 £10,129.71 £731.01 £62,344.71 £10,860.72
Department special adviser in post Payband Salary (£) Note Pension Contribution at 3.5% 19.4% of Earnings 40% tax relief on pension contributions Yearly Total paid by taxpayer (salary+ 19.4% pension contribution) Additional cost to taxpayer of pension contribution at 19.4% and tax take lost on pension relief at 40%
Chief Whip (Commons) Chris White PB2 £52,215.00 Salary not provided, set at bottom of payscale £1,827.53 £10,129.71 £731.01 £62,344.71 £10,860.72
Chief Whip (Commons) Ben Williams PB2 £68,000.00   £2,380.00 £13,192.00 £952.00 £81,192.00 £14,144.00
                   
Totals (Yearly)     £3,930,697.00   £137,574.40 £762,555.22 £55,029.76 £4,693,252.22 £817,584.98
Totals (5 years)     £19,653,485.00 £0.00 £687,871.98 £3,812,776.09 £275,148.79 £23,466,261.09 £4,087,924.88

NOTES 

1. Assumes all special advisers whose salary has not been published are paid at the lowest rate for their payband, or at 50% of payband 0. 

2. Uses the civil service Pensions Choices document (page 10). On average employers currently pay 19.4% of pensionable earnings.

3. Where a position is waiting to be filled salary has been set at 50% of pay band 0 – although it is likely to be significantly higher. 

4. Assumes a tax rate of 40% to calculate income tax relief on pension contributions.


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