UNISON Joins High Court Pensions Appeal

20 February 2012 (PLANSPONSOREurope.com) - UK union UNISON has joined a group of unions appealing to the High Court over which measure of inflation is used to calculate annual pension increases.

In his June 2010 budget, Chancellor George Osborne announced that the government would use the consumer price index (CPI) instead of the retail price index (RPI).

The union says the change which comes into effect in April 2012, will mean the value of public sector pensions will fall by around 15% because CPI is around 1.2% lower on average than RPI.

Dave Prentis, UNISON general secretary, said: "The decision to switch to using the CPI instead is a cynical move to pay down the deficit. This move could cost pensioners thousands. They deserve better. RPI is a much fairer reflection of the costs that retired people face – because, unlike CPI, it includes housing costs.

“Pensioners now, and in the future are being unfairly targeted to pay down a deficit they did nothing to cause. Meanwhile, it’s still bonuses for the bankers. This government may try to claim that we are all in this together – but pensioners will not be fooled.”
 

PLANSPONSOREurope Staff
editors@plansponsoreurope.com