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

'Common sense prevails' as Pensions Schemes Bill passes with investment trusts included

'Common sense prevails' as Pensions Schemes Bill passes with investment trusts included

Following industry pressure

Michael Nelson
clock 29 April 2026 • 2 min read
Parliament agrees Pension Schemes Bill paving way for Royal Assent

Parliament agrees Pension Schemes Bill paving way for Royal Assent

House of Lords agrees heavily amended mandation powers accepting final draft of bill

Jonathan Stapleton
clock 29 April 2026 • 6 min read
Just Group to exit direct-to-consumer business following Brookfield acquisition

Just Group to exit direct-to-consumer business following Brookfield acquisition

Move could lead to redundancies across the business

Holly Roach
clock 24 April 2026 • 1 min read