Labour accuses govt of 'short changing' armed forces on pensions

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Labour MPs yesterday accused the coalition government of 'short changing' the armed forces by indexing their pensions to CPI rather than RPI.

Public service pensions, including those of servicemen and women, are to be indexed using CPI rather than the traditionally higher measure of RPI from April this year. In response to questions from Labour MP for Delyn David Hanson, Andrew Robathan, parliamentary under secretary of state for defence personnel, welfare and veterans said: "CPI is deemed more appropriate than the retail prices index because the Bank of England uses it to measure inflation and it is an internationally standard measure. "We understand the concerns that have been raised about this matter, but such is the sca...

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