RPI to CPI Early Day Motion 1032

Ripoff_2

If you want to read about what is happening in the Appeal then use the following link http://glcoord.org/index.php/cpirpi/judicial-review-2011/387-judicial-review-appeal-day-1-report-ac

ExBT_Bob

The E-petition calling for a debate on the switch from RPI to CPI (http://epetitions.direct.gov.uk/petitions/1535) has received over 109,000 signatures.

John McDonnell MP for Hayes and Harlington, put the case for a debate to the House of Common Back Bench Business Committee and has secured a debate on Thursday 1st March.

Interested_Taxpayer

ExBT_Bob wrote: »

John McDonnell MP for Hayes and Harlington, put the case for a debate to the House of Common Back Bench Business Committee and has secured a debate on Thursday 1st March.

John McDonnell is a Labour MP. He is on a number of Union Parliamentary Groups representing PCS, RMT, FBU, Justice Unions and the NUJ in Parliament.
I am however somewhat surprised that the debate is to be held so soon. I thought the case would be considered and put once the outcome of the appeal is known. It is of course possible that the outcome will be announced before 1st March.

cvd

Progress report on revision of CPI to include housing costs:

http://www.rssenews.org.uk/articles/20120213

viridens

cvd wrote: »

Progress report on revision of CPI to include housing costs:

http://www.rssenews.org.uk/articles/20120213

Although this work seems to be prompted by experts' concerns that CPI is not fit for purpose, I am alarmed by the following paragraph:

"The aim of this work is to understand and communicate the reasons for the increase in the gap between the CPI and RPI caused by the formula effect and to implement improvements to the indices that will remove any unjustified differences caused by this effect. This work is initially focussed on the measurement of clothing inflation in the CPI and RPI but it will be extended in due course to cover other areas of the 'basket' as appropriate.”

This implies that RPI could also be tinkered with to make the difference go away. An 'improvement' which I'm sure would be popular with the treasury.

MEY_3

Maybe Viridens, but the appeal judgement may alter the remit anyway depending on its wording. As I read it one of the points of contention is that whatever index is used has to reflect general price increases. An element of the appeal is whether RPI or CPI best does this, as I understand it. The real fly in the ointment is that it looks as if the Secretary of State may utilise any index he thinks is appropriate so long as it falls within the terms of the Act, so I am sure there will be a lot of civil servants putting their minds together to stretch and bend things to their liking anyway, irrespective of what ONS think.

Interested_Taxpayer

There is a debate in the House of Commons next Thursday because there are over 109,000 signatures to a petitiion asking all MPs to reverse the Governments decision to change from the RPi to the CPI and by doing so robb us for life. Now is the time to hold your MP to account. Irrespective of the political party we all need to write urgently to our MPs and lobby them to support this petition. Some will some won't.
The point is we have to make as much noise as we can. We do not have many more opportunities to put this wrong to right. Please write.

viridens

Plans are already under way to 'harmonise' the RPI and CPI indices. See previous posts & links and:

http://www.mediafire.com/i/?f3j9b9emc0cc2lo


I note that there is consultation, but this will be with 'users', not us 'victims'.

I remain concerned by the proposals that as part of change the formula of the RPI itself may be altered to make the gap between RPI & CPI disappear. Thus all the action to date: legal challenge, appeal, e-petition and debate will have achieved little.

RPI is fit for purpose and CPI is clearly not. CPI should be adjusted to properly match RPI and NOT vice versa. This is important and should be part of the ongoing campaign.

chris_m

viridens wrote: »

I remain concerned by the proposals that as part of change the formula of the RPI itself may be altered to make the gap between RPI & CPI disappear. Thus all the action to date: legal challenge, appeal, e-petition and debate will have achieved little.

But surely if RPI is changed to eliminate the gap, cost increases that are pegged to, or based upon, RPI now would still be pegged/linked but it would effectively be to both RPI and CPI (if they are broadly the same) so CPI-based increases in pensions would be broadly the same as RPI increases in RPI-linked costs?

Our issue is, surely, the gap between the two - does it actually matter whether the gap is closed so that RPI and CPI are broadly the same or pensions increases are reverted to RPI? In which case, the protest action will have done what's necessary, achieved change?

Of course in that case, it would be much easier (and, very likely cheaper) to simply link/peg such things to CPI and chuck RPI away.

MEY_3

The issue is whether the gap is closed towards RPI or towards CPI, which will depend upon which calculative measure is used as much as what is in the basket of goods and services included.
RPI can never be "ripped up" because not only are govt. bonds linked to it but so are many pensions; those that are hardwired to RPI, which we all thought ours were! They also cannot really put housing costs back into CPI because then it wouldn't do its designed function, namely be a tool for measuring cross-border, international comparison inflation. The only sane solution is a fair and just specific inflation measure that can be agreed upon by all interested parties.
I just wonder by the time this whole hoo-ha is done and dusted how much this coaliltion's meddling to try to con pensioners and others out of established increases will have cost and whether it was worth the aggro. I suppose we'll only know that when the appeal judgement is handed down.