Public sector pensions will cost taxpayers an additional £9bn a year due to a ‘toxic' combination of the Public Service Pensions Bill and state pension reform, a Centre for Policy Studies paper shows.
The Office for Budget Responsibility has downgraded its outlook for the UK economy.
The Public Service Pensions Bill 2013 will be announced in Parliament with controversy over strike action and accusations of "steamrolling".
George Osborne will deliver his annual Autumn Statement on 5 December.