London, June 24 (IANS) Practising what he preaches, British Prime Minister David Cameron announces he is giving up his £66,000-a-year pension as his personal contribution to check the country's budget deficit.

He revealed his decision Wednesday night as he came face to face with public sector workers angry about cuts to their pay and perks. He made a joint appearance with his deputy Nick Clegg on the BBC programme, Face The Audience.

"We can't even look public sector workers in the eye until we've sorted out our own pensions and that's exactly what we're doing. We either have to have pay restraint like what we're talking about or we're going to lose jobs."

He admitted that a two-year pay freeze being imposed on all state employees earning more than £21,000 was a real-terms cut. But he also warned that public sector pensions will be affected as part of the measures to plug an £85million economic "black hole".

"In the future pensions have to be affordable, for the future there might be changes in pension arrangements affecting existing employees," The Daily Mail quoted him as telling the audience.

The audience was made up of a cross-section of society and included business men, public sector workers, self employed people and unions.