Statisticians query CPI 'star billing' ahead of pensions link

clock

Leading UK statisticians are questioning government plans to link the state pension and other key benefits to the consumer prices index (CPI).

In a letter to the chair of the UK Statistics Authority, David Hand, president of the Royal Statistical Society (RSS), says CPI does not merit "sole star billing" and argues pensions linked to the retail prices index (RPI) are likely to perform better.     As part of plans to cut £40bn from public spending, the coalition government says from April next year, pension payouts and other benefits would rise in line with CPI instead of RPI. In his letter, Hand writes both indices "have drawbacks", but stresses the RSS has concerns over "the way in which CPI has over the years gained...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

DB pensions industry 'working against' govt finance agenda

DB pensions industry 'working against' govt finance agenda

There is little incentive for schemes not to take risk off the table

Jonathan Stapleton
clock 20 October 2023 • 2 min read
Preparing for October's 'dramatic' pension statement changes

Preparing for October's 'dramatic' pension statement changes

Changes on 1 October set to have major impacts on estimations

Hope William-Smith
clock 10 October 2023 • 2 min read
Pension transfer activity falls to lowest level in over five years

Pension transfer activity falls to lowest level in over five years

Transfer activity now half of that measured this time last year

Jonathan Stapleton
clock 31 August 2023 • 1 min read