Sturgeon says British taxpayers will continue to foot bill for Scottish pensions after independence

Nicola Sturgeon has said British taxpayers will continue to foot the bill for Scottish pensions even if Scotland becomes independent.

The First Minister insisted ‘people will notice no difference’ if Scotland separates from the UK as Scots who have made state pension contributions to the Treasury would still receive those payments. 

Her official spokesman went further and claimed that the UK government would be expected to contribute to the pensions. 

When asked about the issue in the Scottish Parliament, Sturgeon repeated comments from a former UK pensions minister – even though he subsequently clarified them.

Sturgeon quoted comments made by Steve Webb in 2014 before the Scottish Independence referendum where he said people who had ‘accumulated rights would continue to receive the current levels of state pension’.

However, Mr Webb quickly clarified his remarks within days, saying that it was for the independent Scottish government to pay its own state pensions. 

Sturgeon’s comments come after SNP Westminster leader Ian Blackford and Finance Secretary Kate Forces said pensions would not be affected by independence.

The Scottish First Minister and SNP leader want to hold a re-run of the 2014 referendum by the end of 2023 but Boris Johnson has so far refused to grant permission for a vote to take place.  

Murdo Fraser, from the Scottish Conservative Party, said: ‘Nicola Sturgeon was unable to fully endorse the stance of her colleagues because she knows their outrageous spin just isn’t true.

‘Instead, she resorted to quoting comments from then pensions minister Steve Webb in 2014 – despite knowing full well that he subsequently corrected the record, and that the SNP White Paper was clear the Scottish Government would assume responsibility for paying pensions.

‘The economic case for independence has never been weaker. Nicola Sturgeon and her fellow nationalists should stop trying to hoodwink the Scottish public and come clean about the harsh financial realities an independent Scotland would face.’ 

Sturgeon told the Scottish Parliament: ‘When Scotland votes for independence, as was the case in 2014, the distribution of existing UK liabilities and assets, including those related to pensions, will be subject to negotiation.

‘But the key point is for those in receipt of pensions, and it is what the minister for pensions in the UK Government at the time, Steve Webb, confirmed: that people with accumulated rights would continue to receive the current levels of state pension.’

But Mr Webb clarified his remarks just days later, saying: ‘I would think the Scottish people would expect their Government to take on full responsibility for paying pensions. Similarly people in the rest of the UK would not expect to guarantee or underwrite the pensions of those living in what would then [be] a separate country.’

A spokesman for Miss Sturgeon said: ‘Pensions will be delivered in an independent Scotland by the Government of an independent Scotland but there will be historic contributions made into the UK pot that are owed from that UK side.’

Pressed on why the First Minister referenced Mr Webb’s comments when they were clarified one week later, he said: ‘He is on record saying what he said.’

Last week, Sturgeon was accused of overseeing an ‘obscene waste of public money’ after it emerged a team of 11 Holyrood civil servants are working on her new blueprint for Scottish independence.  

Details of the team behind the independence prospectus were revealed by the Scottish Government in response to a Freedom of Information request. 

Analysis of the pay grades of the staff involved suggested the team would cost about £700,000 a year to operate, according to The Herald. 

The SNP has defended the move, insisting it is ‘democracy in action’, but pro-Union campaigners have criticised the use of public resources, arguing Ms Sturgeon should be fully focused on Scotland’s recovery from the coronavirus pandemic. 

Ms Sturgeon said in her ‘Programme for Government’ last year that work would resume on drawing up a ‘detailed prospectus’ for independence.  

The Freedom of Information request asked how much budget had been allocated to the work, with the Scottish Government saying it was unable to provide an exact figure.

The Government said the preparation work would be coordinated by a team consisting of ‘one senior civil servant and 10 other officials’ within the constitution directorate.  

Pamela Nash, chief executive of the Scotland in Union campaign group, said: ‘This is an obscene waste of public money.

‘While our NHS struggles with massive waiting lists and children sit in crowded classrooms, only the SNP could think it sensible to devote civil service time and taxpayers’ money to this.

‘Rather than focusing on how to divide Scotland once again, the Government’s priority should be bringing communities together, giving our NHS and public services the resources they need.’

Donald Cameron from the Scottish Conservatives echoed a similar sentiment, saying: ‘It’s outrageous that the SNP Government are devoting huge resources to their push for another divisive independence referendum, when all their focus should be on Scotland’s pandemic recovery.’ 

But Mike Russell, the president of the SNP, said: ‘The people of Scotland have already decided they should have a choice over their future by electing a Scottish Parliament in May with a record majority of pro-independence MSPs.

‘Now the preparatory work is underway to develop a blueprint for Scotland as an independent country.

‘This is democracy in action: the Scottish Government delivering the manifesto promises on which they were so overwhelmingly elected.

‘This detailed work will ensure that the people of Scotland can make an informed choice when voting in the referendum and are presented with the choice of a better and fairer future in an independent Scotland.’