The Government’s decision to link public and private sector pension increases to CPI rather than RPI inflation will be debated in the House of Commons after an e-petition criticising the change received over 100,000 signatures.
The e-petition calls for ministers to reintroduce the link to the RPI measure of inflation, which tends to be higher than CPI. Chancellor George Osborne (pictured) announced plans switch to the CPI inflation measure in the June 2010 Budget.
Earlier this month, the High Court rejected a claim by public sector unions that the Government’s decision to switch indexation for future pension increases from RPI to CPI was unlawful.
The unions plan to appeal the decision.