RPI to CPI Early Day Motion 1032

MEY_3

There we are then! The judiciary. Are they really not just part of the Establishment too?
http://www.bbc.co.uk/news/business-15999970

This outcome doesn't surprise me whatsoever. Perhaps the challenge wasn't fought entirely on the right issues, who knows, but no sane person (are you listening High Court?) can believe goods substitution has anything to do with measuring inflation.

Ripoff_2

Judges say change from RPI to CPI is lawful, but I have not heard on what grounds yet.

So we have lost the first battle in this disgusting pension robbery by this Government but we have not lost the war. We have to carry on fighting and we have to stand our ground. WE ALSO HAVE A VOTE when the time comes.

Don't forget to keep getting signatures for the e-petition and remember this is NOT over yet.

Interested_Taxpayer

RPI/CPI: OUTCOME OF THE JUDICIAL REVIEW

Today the High Court handed down its judgement on our application for judicial review. I am sorry to have to tell you that the judges have found against us and have dismissed our application. However, on the second of the four main grounds argued, one of the three judges has dissented from the view of his two fellows.

To see our lawyers' summary report of the decision of the High Court, please go to Newsletter Number 80 on our Newsletter page.

http://www.cspa.co.uk

In our view, the judgement is faulty in a number of important respects and, therefore, on the advice of our lawyers, we have sought permission to appeal. We will be consulting with our fellow litigants and with the other group of litigants to see whether they, too, are minded to appeal. We can decide whether or not to proceed to appeal, once we have had time to consider the judgement in rather more detail.

In the meantime, you might be interested to learn that the Chancellor's much-cherished Office for Budget Responsibility has published a report highlighting the long-run difference between RPI and CPI inflation, which says that on average the gap between the two measures is likely to increase to 1.4 percentage points a year. Whether this proves to be true, remains to be seen.

The Office of National Statistics is working to improve both the RPI and the CPI measures but their work is not expected to be complete until 2013. We have told them that we will require a single index for compensation purposes which will reflect the current requirements of pension law, which is designed to protect the purchasing power of pensions and to reflect increases in the general level of prices. The Royal Society of Statisticians is contributing to the ONS work and, together with colleagues from other pensioner organisations, I have joined a new RSS user group to try to ensure that pensioner interests are taken fully into account.

We will continue to keep you posted as things develop.

shaunrc

Hi

I am an economist who also looks at pensions. I have posted on here before about the move from RPI to CPI being unfair and a type of stealth tax.

A new working paper by the Office of Budget responsibility has now decided to in effect agree with me and I have discussed it and explained its implications in the article I have put a link too below.

http://www.mindfulmoney.co.uk/8950/investing-strategy-/pensions-hit-by-move-from-rpi-to-cpi.html

Ripoff_2

Summary of the Judges reasons can be found here. You will see that one of the three judges has raised an issue that there may well be a case to answer and thus the appeal has been granted I believe.


http://www.nfop.org.uk/news/docs/2011/Summary%20report%20of%20Judgment.pdf


nfop.org.uk/news/docs/2011/Summary%20report%20of%20Judgment.pdf full link if you have trouble, just cut and paste into your browser

teacher_retired

It was perhaps too much to hope for a positive result bearing in mind that we are dealing with the absolute establishment here. However it should be noted there was not unanimity on all areas from all the judges thus giving leave to appeal was granted.
That in itself is remarkable and the government cannot quite yet sit comfortable in the knowledge it is all over.

Ripoff_2

The battle continues and this is very interesting indeed well worth a read!

Richard Arthur, head of trade union law at Thompsons Solicitors, which acted for the six, said: “While the High Court’s split ruling is disappointing, the unions central argument that the Chancellor was motivated by deficit reduction when he made the switch, was accepted. It is encouraging that one judge agreed that this was illegal. We have lodged an appeal on behalf of the unions.

“At a time when public sector employees are being forced to bear the burden of the financial crisis, the unions will not allow this unfair and, in our view, unlawful breach of the contracts of millions of workers to rest

http://www.thompsonstradeunionlaw.co.uk/information-and-resources/lelr/weekly-247.htm

Ripoff_2

For those in any doubt why this issue is so important then this is the reason why:

I have just had my House Insurance renewal and its up by RPI 5.6% but private pension increased by CPI 5.2% inflation measure. This I suspect will be the first of many payments that have increased more than my pension increase. RPI will be being used as the start measure when it's higher than CPI for inflation increases and on the odd occasions when CPI is higher than RPI I bet they then revert to CPI as the starting point.

Of course increases for company's are not just based on RPI inflation and for that matter their costs could have risen higher due to raw material costs but the signs over the next few months when bills arrive I suspect will show that many will use RPI as their starting point such as RPI + 1% etc and not CPI. If the Government as we know are putting up taxes such as Road Tax by RPI then companies will do exactly the same, following their example and here my insurance company has done just that. It will be interesting to monitor the rest of my fixed costs to see how many are even higher than RPI or up by RPI. I suspect more will be that way than lower than RPI.

Pension indexing should be restored back to RPI NOW! Please push for the last few thousand signatures on the e-petition

Aberdeenangarse

Ripoff wrote: »

Pension indexing should be restored back to RPI NOW! Please push for the last few thousand signatures on the e-petition

Alternatively, try flogging a dead horse :rotfl:

Linton

Ripoff wrote: »

For those in any doubt why this issue is so important then this is the reason why:

I have just had my House Insurance renewal and its up by RPI 5.6% but private pension increased by CPI 5.2% inflation measure. This I suspect will be the first of many payments that have increased more than my pension increase. RPI will be being used as the start measure when it's higher than CPI for inflation increases and on the odd occasions when CPI is higher than RPI I bet they then revert to CPI as the starting point.
....

Insurance companies always increase their charges a bit each year when they have you hooked. Try another provider - I bet you can get it cheaper.

Which is why, IMHO, CPI is a more accurate measure of actual cost increases than RPI.