Confusion all round indeed!

When I referred to 'state pensions' I was referring to the pensions paid to pensioners who were previously state (Government, Local Authority etc) employees. Let's call them Public Employees. I'm happy not to use the term 'gold plated' if that upsets people.

I believe it is correct to say that the Old Age Pension (as distinct from the pension for Public Employees, was originally intended to be funded from NI contributions. That link has now been lost and NI is, effectively, just another form of tax levied on both employees and employers. The OAP has dwindled in real terms and I see little likelihood that it will become a substitute for an occupational pension in the forseeable future.

The fact is that the private sector has recognised that the final salary pension schemes of old are unaffordable and they have almost universally had to reduce benefits for existing employees and drastically reduce them for new employees. My understanding is that in the Public Sector, there is resistance to doing either of these things. I accept the argument that Pensions are a form of deferred salary, but one's future salary can never be guaranteed.

If Kipya wants us to suffer inflation as a means of solving our financial woes, then God Help Us. That will reduce the income of anyone whose pension is not index linked (ie the majority of those in the Private Sector) to virtually nothing whilst destroying the value of any savings they may have. Given that most can expect to have to live on their pension for many years now, that's a very worrying scenario.

I don't know how much the Libyan campaign will have cost us - but I don't think it is true to say the money has been found. I suspect it has added to Government borrowing and will also have to be paid for by future generations, just like the PFI debts. Certainly it has cost a great deal more than having the RAF sitting around - they don't fire off too many missiles in training - and I believe cruise missiles cost around £0.5m each.