Government to link private sector schemes to CPI

Pension increases for private sector schemes are currently indexed in line with the Retail Prices Index (RPI). Pensions minister Steve Webb said this follows the decision to link public sector pension increases to the CPI, announced in the Budget last month. In a statement, Webb said: "The Government believes the CPI provides a more appropriate measure of pension recipients' inflation experiences and is also consistent with the measure of inflation used by the Bank of England. "We believe, therefore, it is right to use the same index in determining increases for all occupational pen...