RPI to CPI Early Day Motion 1032

Goldwing1

I've just noticed that http://www.pensionersagainstcpi.org/ has been updated. There's a report on last week's lobby along with the view of the Labour Party.

This is not going to be won overnight so keep on at those MP's. Even those who can't/wont should still be made to feel as much pain as possible.

teacher_retired

Goldwing1 wrote: »

I've just noticed that http://www.pensionersagainstcpi.org/ has been updated. There's a report on last week's lobby along with the view of the Labour Party.

This is not going to be won overnight so keep on at those MP's. Even those who can't/wont should still be made to feel as much pain as possible.

Thank you its good to see the labour party support the accrued rights issue.
It is also good to see the official statistics people arguing against the change.
It's not dead yet - quite the reverse. I espect Thursday 10ths Hutton report to bring the principle of 'accrued rights' to the fore.
This along with March 26th rally will kick new life into this issue I suspect.

JamesU

teacher_retired wrote: »

I espect Thursday 10ths Hutton report to bring the principle of 'accrued rights' to the fore.

Last October's press release here:
http://www.hm-treasury.gov.uk/d/press_huttoninterim_071010.pdf

And Lord Hutton's detailed Interim Report from last October here:
http://www.hm-treasury.gov.uk/d/hutton_pensionsinterim_071010.pdf

From second link:

Ex.10 More recently the current Government changed the measure of annual price movements, so that from April 2011 onwards pensions uprating will move from the Retail Price Index (RPI) to the Consumer Price Index (CPI).

Ex.11 This change in the indexation measure may have reduced the value of benefits to scheme members by around 15 per cent on average. When this change is combined with other reforms to date across the major schemes the value to current members of reformed schemes with CPI indexation is, on average, around 25 per cent less than the pre-reform schemes with RPI indexation.

2.14 If CPI uprating were to be continued through the 21st century, with an average differential from RPI of 0.75 percentage points as forecast, then subject to how cap and share is operated, this change could reduce public service pension expenditure by over 10 per cent by 2030 (£5 billion in 2008-09 prices) and by 20 per cent by 2060 (£20 billion in 2008-09 prices). There is further analysis of the possible long-term effects in Chapter 4, for example in paragraphs 4.31 to 4.34, Table 4.C and Chart 4.A.


JamesU

viridens

It seems to me that this campaign would benefit from more publicity. There are still plenty of PS pensioners out there that either don't realise that they will be affected, don't understand how the change will rob them over time, or simply trust the Government not to cheat them at all. We need to make these victims aware and encourage their support for the EDM and related action.

We also need to find a way to counter media attacks on all PS pensions as 'gold plated', and government spin that CPI is a better measure of inflation for pensioners etc.

Public understanding is not helped by the confusion over terms like CPI v RPI, accrued benefit & accrued rights, Triple lock guarantees, and even state and public sector pensions.

I met yet another pensioner yesterday (a retired radiographer) who had still not relised that their pension was affected because of this confusion about accrued benefits.

I realise I am preaching to the converted here, where some of the discussion is technical and esoteric. More converts would be useful. Any bright ideas to spread the word wider in simple bullet points?
I would be happy to chip in for a suitable campaign advert in the national press.

Ripoff_2

viridens wrote: »

It seems to me that this campaign would benefit from more publicity. There are still plenty of PS pensioners out there that either don't realise that they will be affected, don't understand how the change will rob them over time, or simply trust the Government not to cheat them at all. We need to make these victims aware and encourage their support for the EDM and related action.

We also need to find a way to counter media attacks on all PS pensions as 'gold plated', and government spin that CPI is a better measure of inflation for pensioners etc.

Public understanding is not helped by the confusion over terms like CPI v RPI, accrued benefit & accrued rights, Triple lock guarantees, and even state and public sector pensions.

I met yet another pensioner yesterday (a retired radiographer) who had still not relised that their pension was affected because of this confusion about accrued benefits.

I realise I am preaching to the converted here, where some of the discussion is technical and esoteric. More converts would be useful. Any bright ideas to spread the word wider in simple bullet points?
I would be happy to chip in for a suitable campaign advert in the national press.

I might be wrong but when the increases in pensions either public or private are popped through the letter box in April and people realise that their pension has only increased by 3.1% because of the CPI then one would hope that the alarm bells start to ring?

It's when people see the increases in prices and the lower increase in their pension, than they have been getting with RPI, that the penny may drop. Well I hope it will!

This will be the time to have the National Press campaign and drive the message home. Point out that next year if CPI remains then their pension will be even less as inflation rises. Lets face it no one believes inflation is 4% anymore, CPI is already discredited. We all can see from our bills as they pop through the letter box that inflation is nearer to RPI at 5.1%. My road tax has gone up 7.9%, my water by 4.3%, it will be interesting what the rest will be.

So I agree with you, we need some ideas and thoughts on how to take this forward and I hope that once people start to see what this really means in cash terms then they will begin to wake up.

The website at http://www.pensionersagainstcpi.org/ is a good starting point.

JamesU

teacher_retired wrote: »

I espect Thursday 10ths Hutton report to bring the principle of 'accrued rights' to the fore.

Yes tommorrow's report may have additional changes to accrued rights, interesting GMB link below on some of the likely possbilities:

http://www.gmb.org.uk/newsroom/latest_news/gmb_on_hutton1.aspx

JamesU

Goldwing1

Steve Webb still hasn't got the message.
http://www.moneymarketing.co.uk/politics/webb-defends-pension-reform-plans-at-select-committee/1027428.article

"Webb defended the move from RPI to CPI for uprating pensions, saying CPI is a “better fit” with pensioners’ living costs."

Keep writing to those MP's.

Stargazer57

Ripoff wrote: »

We all can see from our bills as they pop through the letter box that inflation is nearer to RPI at 5.1%. My road tax has gone up 7.9%, my water by 4.3%, it will be interesting what the rest will be.

What's happening to your Council tax this year? That's in RPI and not in CPI isn't it?

Old_Slaphead

Prof_as_was wrote: »

Calling Old Slaphead - where you been, man? Waiting for you to explain to Linton, in your own pithy way, that private, individual inflation experience is a lifestyle choice, with absolutely no general application or significance.

Happy to oblige if you refer me to specific comments.

While we're at it can you share the secrets of your financial alchemy with me (see #561)? As it's off-topic I'm quite happy if you PM me but then again, I'm sure any budding pension fund managers nosying around will be interested to see how it's done.

viridens

Ripoff wrote: »

I might be wrong but when the increases in pensions either public or private are popped through the letter box in April and people realise that their pension has only increased by 3.1% because of the CPI then one would hope that the alarm bells start to ring?.....
....So I agree with you, we need some ideas and thoughts on how to take this forward and I hope that once people start to see what this really means in cash terms then they will begin to wake up.

The website at http://www.pensionersagainstcpi.org/ is a good starting point.

Unfortunately, there is also a lot of pensioner apathy. I am sure that some will also be mollified just to see some increase in their pension for the first time in 2 years, and won't look deeper to consider and understand RPI/CPI implications without suitable prompting, let alone do anything about it. Pensioners need to know there is a campaign in order to support it.

The excellent website is a good starting point, but once again folks either need to be made aware that the site exists, or be sufficiently motivated to go Googling. In other words there is the same need for effective and accessible publicity.