Minister Marks Step-Change Away From RPI

In a short written statement to Parliament yesterday, the Pensions Minister Steve Webb announced that the Government intends to replace the Retail Prices Index (RPI) with the generally lower Consumer Prices Index (CPI) as the basis of uprating in relation to private occupational pension schemes, the Pension Protection Fund and the Financial Assistance Scheme. This change will bring private sector practice broadly in line with recent pronouncements on public sector pensions: the government says that it regards consumer prices inflation as a "more appropriate measure of pension recipients' inflation experiences".  The necessary amendments to primary legislation are to be brought forward at the earliest opportunity.