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Proceeding contribution from Grahame Morris (Labour) in the House of Commons on Thursday, 1 March 2012. It occurred during Backbench debate and e-petition debate on CPI/RPI Pensions Uprating.


CPI/RPI Pensions Uprating

Absolutely; that is a very good point well made. I am certainly aware, from visits to Germany and elsewhere, that there is a much larger private rental sector in Europe, so it is quite right that we retain RPI, as it takes account of mortgage costs, which are a significant factor for many people. I support the motion because the change from RPI to CPI means that many people, both those already retired and those yet to retire, will receive less than they were led to expect. As my hon. Friend said in her speech, many of those people have made long-term decisions about their income in retirement, such as to pay off mortgages and other commitments, based on the fact that they would receive a pension that was linked to RPI. Retrospection is unfair, and the House should call on the Government to reintroduce the RPI measure immediately. For a typical firefighter on a full pension this year, the actual cost over 20 years of retirement is between £25,000 and £52,000—that was confirmed in a survey that was carried out by the Fire Brigades Union—and that is because the Government have imposed this measure. I emphasise that these changes have been imposed without any consultation. The argument that CPI is a more appropriate measure for how pensions should be paid is false. Indeed, all three of the judges in a test case brought by the FBU stated that the move to CPI is merely to do with the desire to force through budget cuts. To pretend otherwise is ridiculous. Government Members are suggesting that it is not about deficit reduction, but it is certainly about budget cuts and placing the burden of those cuts unfairly and unjustly on to pensioners.


Secondary information

Type
Proceeding contribution
Reference
541 c476-7 
Session
2010-12
Chamber / Committee
House of Commons chamber
Subjects
Civil service Judgements Local government NHS Police Workplace pensions Public sector Teachers Uprating Retail prices index Consumer prices index
Link
View this Proceeding contribution on www.publications.parliament.uk