New statistics "prove CPI is unfair for pensioners"

14/09/2010

The General Secretary of the National Federation of Occupational Pensioners (NFOP) has said that newly-released statistics prove that the Government’s decision to change pension increases from the RPI to CPI is grossly unfair.
 
The Office for National Statistics figures for August show that the CPI annual inflation rate was 3.1 per cent – while the RPI was 4.7 per cent. This means that State pension would be more than £80 lower in 2011 if these figures were applied under the Government’s new rules. Pensioners will lose out even more when smaller increases to SERPS and State Second Pension are taken into account.  
 
The General Secretary of NFOP, Roger Turner, said the statistics prove what many had already feared – that pensioners will lose out significantly under the new deal.
 
“The coalition Government swore to look after the most vulnerable in society, and yet this change to CPI will take money away from those that really need it.
 
“To make matters worse, the statistics show that the CPI was kept level partly by a lowering of second-hand cars prices, but food and clothing, everyday necessities for pensioners, had increased in price.
 
“When other Government decisions are taken into account, such as the VAT increase and the worrying discussions that are taking place around the abolition of the winter tax allowance and means testing of the free bus passes, many pensioners feel that their already meagre financial support is dwindling rapidly to a level which will no longer enable them to have an acceptable quality of life.
 
“Can the Government still maintain that the change in indexation is fair, when all evidence proves to the contrary?”