So all those people who benefit from private company pensions can have their taxes put up proportionately to pay for that then can't they

Just in case the BoE was not aware of this there are people who work their entire careers without the pensions benefits that the privileged have, so they with their much smaller pots should not have their tax increased in this clean up operation. Fair's fair. 

Yes this is nuanced BoE - tricky isn't it - in your next letter to the govt just ask them to nationalise you, simples: no responsibility = no worries