Former Tory minister calls 10% rise in state pension ‘ludicrous’

Jim O'Neill scathing about decision to help pensioners while forcing real-terms pay cuts on public sector workers

Government plans to raise the state pension by 10% while forcing real-terms pay cuts on public sector workers have been attacked as ludicrous" by a former Conservative Treasury minister.

Jim O'Neill, the former Goldman Sachs chief economist who served as a minister under George Osborne, said it was crazy" to protect pensioner incomes while younger people's wages were being eroded by the highest inflation rates for 40 years.