Whitehall saves £3.4 billion on pay and pensions

The government has saved £3.4 billion by reducing the size of the civil service and reforming civil service pensions, according to a report by the Cabinet Office.

The Efficiency and reform 2013/13 summary report revealed that government workforce savings are up by £1.9 billion from £1.5 billion in 2011/12, to £3.4 billion in 2012/13.

The Efficiency and Reform Group, which works with government departments to cut costs, helped reduce the size of the civil service, saving £2.2 billion, and decreased contributions to public sector pensions, saving £1.1 billion.

The plan was part of government-wide initiative to save at least £8 billion of taxpayers’ money by 2012/13.

Francis Maude, minister for the Cabinet Officer, said: “We know there’s a long way still to go to achieve our ambitious plans for savings over the next few years.

“Hard-working taxpayers rightly expect their money to be spent judiciously.

“The Efficiency and Reform Group are the taxpayers’ champions in Whitehall. I am determined to push ahead with this savings programme and I would like to thank all the civil servants who have worked to make it happen so far.”

Chart for government savings