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Treasury

Answer

Dr. Cable: To ask the Chancellor of the Exchequer what plans he has to link index-linked public sector (a) pay and (b) pensions to the harmonised index of consumer prices; and what estimate he has made of the change in annual public sector annuities which would result. [141728] Ruth Kelly: Pay is not index-linked to inflation in any part of the public sector. Pay remains the responsibility of individual departments and employers. Nor are there any plans to link index-linked public service pensions to the harmonised index of consumer prices. When the Chancellor announced his intention to change the inflation target to one set on the consumer prices (HICP) definition, in his statements on Economic and Monetary Union on 9 June and 10 July, he also confirmed that pensions such as State second pension and public service pension benefits would be calculated on exactly the same basis as now. Public service pensions will continue to be increased in line with the September to September movement in the retail prices index, as calculated by the Office for National Statistics (ONS). benefits would be calculated on exactly the same basis as now. Public service pensions will continue to be increased in line with the September to September movement in the retail prices index, as calculated by the Office for National Statistics (ONS).

Secondary information

Type

Written question

Reference

141728; 415 c57-8W

Session

2003-04

Subjects

Inflation Pay Pensions Public service Prices Consumer prices index

Link

View this Written question on www.publications.parliament.uk