ScaryTeacher, I can't see any justification for asking public sector workers to pay more than their proportionate share, simply because the Government can force them to. Why should a dustbin man take, in effect, a pay cut in order to resolve a national problem that he hadn't nothing to do with?
Even DC is only recommending a pay freeze for the top earners within the public sector, he's not suggesting that those at the very bottom of the ladder pay above their share.
Besides, it would be counter productive, since most lowly paid public and private sector workers will also receive tax credits, unless you're advocating (and I think you might be) cutting those too.
I wonder how you think these people, who no doubt have to account for every penny as it is, will be able to continue to run their households, pay their mortgages, or do you simply not care?
A much fairer system is to simply increase taxation levels for everyone. I make no apologies for my socialist stance here, those who have the most disposable income available should be prepared to pay a higer proportion in order to get us out of this mess, particularly hedge fund managers and big banking bosses earning hundreds of thousands in bonuses.
It is not unreasonable to expect that those who did disproportionately well during the good times should be prepared to take a bigger hit in the bad times.
Having said all of this, I do think public sector pensions do need to be looked at. They are, without doubt, exceptionally generous when compared to the private sector. I think savings could be made and money saved without directly affecting the current standard of living for the lower paid workers in the public sector.
Running late now, so haven't had time to proof read, apologies for any mistakes/typos.