The CBI has welcomed Lord Hutton’s interim report on public sector pensions.

In the report, Hutton argued there was a “strong case” for current public sector workers to contribute more from their salaries each month to tackle the £1 trillion black hole in the public pension pot.

He recommended that their retirement age should be raised to bring it in line with the continuing rise in life expectancy, and called for an end to lucrative final salary schemes.

Commenting on Hutton’s report, John Cridland, CBI deputy director-general, says: “Lord Hutton’s report is a long-overdue first step to delivering sustainable pensions in the public sector.

“He rightly recognises the need to measure the cost of public sector pension benefits properly, and ensure that this cost is met by employers and their employees.”