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CPI/RPI Pensions Uprating

I certainly accept the point that CPI implies that people are active shoppers. Most of the pensioners I have come across are extremely good active shoppers, however. Every individual faces a unique rate of inflation. We have given the Bank of England the task of managing the CPI rate. It is therefore sensible to use that measure for assessing pension increases. We have talked about the high proportion of Britons who do not have any pension savings for retirement, the fact that many private companies have closed down their pension schemes, and the fact that Britain has become woefully under-pensioned. Giving private-sector companies the flexibility to shift their index and linking pensions to CPI are both wise policies. They serve to put the overall public-sector pension liability on a more sustainable footing, which is important for all future public-sector workers. They also make the bargain between those with no pension provision and those who enjoy final salary, inflation-linked pensions fairer. The Chancellor and the pensions Minister have faced a series of difficult choices, and they have made the right decisions. I believe the new measures will lead to our having more people across the work force saving for a comfortable retirement, which is an objective we all want to achieve.