Six public sector trade unions have had a bid to reverse the Government’s decision to switch pensions indexation from RPI to CPI rejected by the Court of Appeal.
The unions launched the legal challenge after the change to CPI indexation, which tends to be lower than RPI, was announced by Chancellor George Osborne (pictured) in the 2010 Budget.
The judicial review began in October last year, with the unions arguing that the move was not permitted under social security legislation and reneged on commitments from previous Government’s that RPI would apply.
The High Court delivered a majority verdict in favour of the Government in December 2011, leading to an appeal from the unions.
The Court of Appeal has today ruled that the Government was entitled to make the change.
Thompsons Solicitors, which is representing the trade unions, says they are now considering their next steps.