Latest Public Sector News

08.10.12

Pensioners could suffer from RPI changes

Changes to the calculation of the retail prices index (RPI) could cut pensioner’s incomes, campaigners have warned.

The ONS has launched a consultation on whether it is necessary to change RPI, to bring it more in line with the consumer prices index (CPI).

The gap between the two is currently 0.9 percentage points on average, but the Office for Budget Responsibility (OBR) has forecast this will widen to 1.4 for the rest of the decade.

The options the ONS is going to look at are: no change at all; partial changes to the RPI's formula, which would reduce the gap with CPI slightly; or changing the construction of RPI to remove the formula effect altogether, which would shrink the overall gap considerably.

Darren Philp of the National Association of Pension Funds (NAPF) said: “Pension funds are major investors in government debt and changes to index-linked bonds could have far-reaching impacts on those investments. It could also alter the amount by which pensions being paid to former workers are increased each year.”

The consultation closes on November 30.

Tell us what you think – have your say below, or email us directly at opinion@publicsectorexecutive.com

Comments

There are no comments. Why not be the first?

Add your comment

 

related

public sector executive tv

more videos >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource – this has been the r more > more last word articles >

public sector focus

View all News

comment

Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Bei... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues t... more >

interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need ... more >

the raven's daily blog

Utilising data to best deliver meaningful public services

14/11/2019Utilising data to best deliver meaningful public services

Public Sector Executive’s Matt Roberts explains how living in a modern, interconnected world, as we do, means public sector organisations cannot afford to ignore the rol... more >
read more blog posts from 'the raven' >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >