Six separate public sector organisations will today launch a judicial review challenging the Government’s decision to uprate future pension increases by the consumer prices index.
Legal advisers representing the Civil Service Pensioners’ Alliance, the Police Federation, the National Association of Retired Police Officers, the FDA, the GMB and Prospect have written to the Treasury and the DWP warning its decision to switch the measure used to calculate pension increases from the RPI to the CPI will be contested.
The public sector representatives argue that, in choosing the CPI, Secretary of State Iain Duncan Smith “has not acted within his legal authority nor strictly in accordance with relevant statute in adopting a measure of inflation that is, at least in part, directed towards changes in consumer behaviour rather than changes in prices”.
National Association of Retired Police Officers chief executive Clint Elliot says: “The coalition Government decided to change to CPI indexation despite clear assurance to public sector pensioners before the general election and without seeking advice from the UK Statistic Authority.
“CPI does not properly reflect increases in prices and does not meet legal requirements.”
Over the long-term CPI is expected to be lower than RPI. In March, the CPI was 4 per cent while the RPI was 5.3 per cent.