The NPC would like to share with you our recent submission for the consultation on the reform to the Retail Price Index methodology. With thanks to the hard work put in by our Pensions & Income Working Party
The National Pensioners’ Convention (NPC) is Britain’s biggest independent organisation of older people, representing around one thousand local, regional, and national pensioner groups with a total of 1.5 million members. The NPC is run by and for pensioners and campaigns for improvements to the income, health and welfare of both today’s and tomorrow’s pensioners and this response is based on the views and experiences of our members. We wish to submit these views to the RPI Consultation Team.
Pensioners currently have to deal with conflicting Price Indices, used extensively to represent levels of inflation. Some occupational pensions are linked to CPI, some to RPI, and the state pension to the triple lock. Many price increases are linked to RPI such as utilities, rail fairs etc. Also, government bonds are linked to RPI. What we need is a universal inflation index that compensates pensioners fairly, still maintaining the triple lock, and ensures that price increases are on the same basis.