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RPI to CPI Early Day Motion 1032

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Comments

  • I am still amazed at the number of people out there who have no idea what this change means to them. I cannot understand why the unions are failing to keep this at the front of their arguments. It is daylight robbery! The people who paid for rpi linking for example must have been the victim of fraud.
    Surely some MP somewhere could raise this?
    Why are they all so quiet?
    If this succeeds governments can just choose to remove indexing!
    Publicity is the key - making everyone aware of what is going on and on this the unions hold a key role - surely.
  • hugheskevi
    hugheskevi Posts: 4,515 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    If this succeeds governments can just choose to remove indexing!
    That isn't true, or at least, no more than it has ever been.

    The Govt. duty under legislation is to uprate benefits to reflect the change in the general level of prices. The Govt considers CPI to be the most appropriate measure of prices to use, it previously considered RPI to be the most appropriate.

    Use of CPI cannot be said to be an irrational decision to meet an obligation to reflect change in general level of prices (and, subject to appeal, has been established as lawful).

    That doesn't mean it cannot be challenged on other grounds (eg perceived entitlement to RPI), simply that it is not an unreasonable index to use to meet an obligation to adjust for change in general level of prices.

    Choosing zero as the measure by which uprate pensions (ie abolsihing indexation) would not meet the requirement to reflect the change in the level of prices and would clearly be an irrational decision and easily challenged in law as Ministers would be failing to carry out their statutory duties in line with legislation.

    Ultimately, the Govt. could choose to change the law entirely to remove indexation (although there would be European Court of Human Rights implications), but that has always been the sitation, and this case has no particular bearing on that.
  • MEY_3
    MEY_3 Posts: 113 Forumite
    edited 1 February 2012 at 5:53PM
    But the change to CPI is irrational as a measure of general price rises. If it doesn't include aspects that are a high proportion of almost everyone's budget. e.g. Council tax, and for that matter house insurance how can it be even approaching a true reflection? It is unbelievable that the judges could not see that an index that doesn't even reflect normal, and obligatory household expenditure such as that, as well as one that uses subtitution i.e. isn't reflecting like for like, could be deemed suitable.
    If the government's only obligation is to select an index that suits them (which they have admitted in this case, and is all about saving money) but does not necessarily have any credibility amongst experts that it is suitable for the object of reflecting personal inflation, then in spite of what you say above, indexation that has any meaning or value is extremely vulnerable to the whim of those in power.
  • Ripoff_2
    Ripoff_2 Posts: 352 Forumite
    I had to post this article http://www.dailymail.co.uk/news/article-2094718/Judges-sue-save-free-pensions-threatening-court-action-unless-Government-backs-down.html?ito=feeds-newsxml because it just shows what hypocrisy we have in this country. The judges say CPI change is lawful but are challenging their FREE pension being changed. So they can stuff us for years to come when clearly the change to CPI was based on cost saving alone and thus was and is illegal in my opinion, despite what they ruled. But when it comes to their pension and making the judges pay towards it, they believe it is illegal. So out of our reduced CPI indexed pension we pay tax to pay the Judges pension, unbelievable!
  • KMK
    KMK Posts: 271 Forumite
    And let's not overlook the ultimate hypocrisy that MPs' pensions are still benefitting from RPI. These include many of the individuals who, before they retired, were fiddling their expenses.
  • I am still amazed at the number of people out there who have no idea what this change means to them. I cannot understand why the unions are failing to keep this at the front of their arguments. It is daylight robbery! The people who paid for rpi linking for example must have been the victim of fraud.
    Surely some MP somewhere could raise this?
    Why are they all so quiet?
    If this succeeds governments can just choose to remove indexing!
    Publicity is the key - making everyone aware of what is going on and on this the unions hold a key role - surely.

    I fully agree. I don't understand the reason for such apathy. Most unions have failed to make members aware of the full impact of the RPI/CPI swindle, and have not promoted either EDM1032 or the e-petition. Unfortunately, the majority of unions have now simply caved in and accepted the swindle as a done deal instead of contesting it as a prerequisite to, or critical part of the recent 'negotiations'.

    I am still banging my head against the ATL brick wall. There has now been a poll with 91% of members voting in favour of the 'accept it or we'll impose something worse' government offer.
    I have just written again to ask why my query of 18 Jan (copied below) in response to this press release to members: http://www.mediafire.com/?hpa47v5pvxo7tow, has not received a reply.

    [FONT=Arial, Helvetica, sans-serif][FONT=Arial, Helvetica, sans-serif][FONT=Arial, Helvetica, sans-serif][FONT=Arial, Helvetica, sans-serif]Dear Sir or Madam

    The statement made in in this release that:
    "• Pensions for teachers, along with everyone else, will rise in line with CPI instead of RPI as the government refused to negotiate on this."
    is incorrect. You should be aware that MP's pensions together with other schemes remain index linked to RPI.

    Clearly, the other 'gains' made in the latest negotiations are dwarfed by the progressive erosion of pension value caused by this RPI/CPI switch.
    [/FONT][FONT=Arial, Helvetica, sans-serif]
    This cynical retrospective change to pension terms and conditions also makes nonsense of the government promise that the accrued rights of those within 10 years of retirement are protected.

    [/FONT]
    [FONT=Arial, Helvetica, sans-serif]This destructive change should not be conceded so readily[/FONT][FONT=Arial, Helvetica, sans-serif], particularly since: a) an appeal to the judicial review is in progress
    b) The direct.gov e-petition has exceeded the 100,000 votes required to trigger a parliamentary debate on this matter.
    Both of which ATL has failed to properly publicise or support.
    [/FONT]
    [FONT=Arial, Helvetica, sans-serif]Further, this aspect of pensions uniquely affects ALL TPS (and other public and private sector schemes) members whether still in service, already retired, as well as their widows & widowers.

    As a member of this union I expect negotiators and officers to actively defend the terms and conditions of my pension, and not to concede the RPI/CPI switch as a done deal. What action is planned?

    Please forward this email as necessary to ensure a proper reply.

    Yours faithfully

    Maybe other union members could ask similar questions.
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  • Ripoff_2
    Ripoff_2 Posts: 352 Forumite
    edited 3 February 2012 at 4:36PM
    http://www.maturetimes.co.uk/campaigns/pensions-benefits/1045-join-our-pensions-demonstration-on-20th-february.html

    Join the NPC pensions demonstration on 20th February

    On the 20 th February 2012 a number of trade unions and pensioner organisations will begin an appeal against the recent High Court decision to reject the case for a judicial review on the issue of pensions -challenging the government’s change to the way pensions are increased to take account of inflation; from using the Retail Price Index (RPI) to one using the Consumer Price Index (CPI).

    To raise awareness of the appeal a demonstration will take place outside the High Court, The Strand WC1 at 8.30am – 10am on Monday, 20 th February.

    Please turn up with banners and show your support.
  • From scotsman.com

    Minister ‘blocking e-petition debates’
    Published on Friday 3 February 2012 00:00

    The e-petitions website has “falsely raised expectations” that MPs will debate issues close to the public’s hearts, an MP said yesterday.

    Natascha Engel, chairwoman of the back-bench business committee, said ministers were trying to avoid the “headache” of debating controversial issues which had attracted 100,000 votes on the government website. Her committee was authorised to schedule time for the debates, but she claims she has not been given parliamentary time.
    She currently has three e-petitions awaiting debate, including the government’s decision to switch pension indexing from RPI to CPI, immigration and the circumstances surrounding the death of a Hillsborough victim.
    She said now would be the perfect time to hold the debates. But Commons leader Sir George Young was “bed-blocking” important debates by selecting relatively uncontroversial issues, Ms Engel said.
  • Email response received from Gregg McClymont, Labour's shadow pensions minister.

    Looks like I shall be voting for the Raving Loony Party at the next election.

    Dear Paul,

    Thank you for the email which you sent to Rachel and which she has passed to me. The Labour Party position is that we do not agree with a permanent switch from RPI to CPI. We do accept it as a temporary emergency measure for the duration of this parliament. But as Ed Miliband and Ed Balls explained earlier this month, ongoing mismanagement of the economy by the Conservative-led government makes it impossible for us to commit to reversing the switch during the next parliament.

    Best wishes
    Gregg
  • chris_m
    chris_m Posts: 8,250 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    BaldGringo wrote: »
    But as Ed Miliband and Ed Balls explained earlier this month, ongoing mismanagement of the economy by the Conservative-led government makes it impossible for us to commit to reversing the switch during the next parliament.

    Bwahahaha, and just who was involved in the last mismanagement of the economy? Oh yes, Ed Balls.

    Still, I suspect it's very likely that they wouldn't be able to reverse it in the next parliament - because they won't be leading the next parliament.
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