Officials at the Department for Communities and Local Government (DCLG) have yet to reveal how they intend to manage any staff pension scheme liabilities that may exist when the Audit Commission is abolished.

However, the DCLG has provided the National Audit Office (NAO) with assurances that ministers would not allow the local government watchdog's potential pension scheme liabilities to ‘crystallise' – something that could heap additional costs on to taxpayers.