MPs reject calls to uprate pensions by RPI

Labour member John McDonnell moved the motion to reverse the government's move to switch to the consumer prices index (CPI). McDonnell drew on an e-petition against the use of CPI which drew 110,000 signatures, saying the speed with which the petition gained support showed the anger the decision had caused. He warned the change could lead to fewer people paying into occupational pension schemes, putting those schemes at risk and increasing the burden on the state as more people turned to means-tested benefits. But pensions minister Steve Webb defended the switch and claimed that th...