How a QUARTER of council tax goes towards town hall workers' pensions

A report on how local authorities spent their money estimated that council tax collected in the past financial year came to £19.2billion, while £4.6billion of that went into councils' pension pots.

The figures come at a time of growing unease over the cost of inflation-proof public sector pensions, which provide guarantees which workers in the private sector can no longer expect.

The figures come at a time of growing unease over the cost of inflation-proof public sector pensions, which provide guarantees which workers in the private sector can no longer expect.

A 'staggering' quarter of council tax is paying the pensions of local government workers (file picture)

Town halls' contributions to their employees' pensions have more than tripled since Labour came to power in 1997.

Council tax has more than doubled in that time, with the burden falling most heavily on pensioners and those living in the suburbs, the countryside and the South.

Critics of the growing cost of public sector pensions warned that the tax demands they generate are causing resentment.

Ruth Lea, economic adviser to the Arbuthnot Banking Group, said: 'These are staggering figures.

'There is a real feeling of grievance over this among people who pay high taxes and whose own pension expectations have been severely cut. It is grossly unfair that public sector employees should be entitled to pensions that are not available in the private sector. Politicians are going to have to start confronting this.'

Tory local government spokesman Eric Pickles said: 'This will be resented by the elderly who have seen a third of their state pension increase since 1997 snatched back in higher council tax.'

It was revealed last year that more than 800 local authority officials earn in excess of £100,000 a year, while Suffolk county council's new chief executive is paid £220,000 - £31,000 a year more than the Prime Minister.

But John Ransford of the Local Government Association said: 'It is right that lollipop ladies, binmen, street cleaners and librarians get a pension worthy of the years of service they have given helping their local community.'

While the earnings of those in the top tier of local government have soared, many council workers are on lower than average pay.

Their generous pension scheme is seen by many as a form of compensation for accepting lower salaries.