Pension CPI switch ruled lawful in High Court

clock

The government's decision to switch from RPI to CPI to calculate annual public sector pension upgrades has been ruled lawful in the High Court.

A group of trade unions had accused the government of unlawfully attempting to reduce pension costs in the battle to cut the UK's financial deficit. Since April this year, the government has used the consumer price index (CPI), instead of the normally faster-rising retail price index (RPI), to measure price increases influencing the uprating of public sector pension schemes. Government lawyers argued CPI was "a more appropriate measure of changes in the general level of prices". They said the change was legal, will save £6bn a year and help to return the UK to a secure financial footi...

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

'Significant gap' found in HMRC's SIPP data

'Significant gap' found in HMRC's SIPP data

No data identifying SIPPs or junior SIPPs as distinct categories, Aberdeen Adviser FOI finds

Isabel Baxter
clock 01 July 2026 • 2 min read
Politicians urged to address long-term sustainability of state pension triple lock

Politicians urged to address long-term sustainability of state pension triple lock

Aegon says triple lock debate is ‘not a simple case of keep it or scrap it’

Holly Roach
clock 23 June 2026 • 3 min read
Andy Burnham clarifies stance on Waspi compensation

Andy Burnham clarifies stance on Waspi compensation

Burnham called for ‘recompense’ yesterday but now says he accepts final decision has been made

Martin Richmond
clock 11 June 2026 • 2 min read