Indexation stealth attack on public sector pension Income‏

With one swish of his pen the millionaire Osborne reduces our income as public sector pensioners. How? By linking our pension income rises to the Consumer Price Index and not the Retail Price Index.

http://blogs.ft.com/westminster/2010/06/cut-of-the-day-public-sector-pensions-and-cpi/

From April next year, benefits, tax credits and public-service pensions will be increased in-line with the consumer prices index (CPI), rather than the retail prices index (RPI). The CPI – the inflation measure targeted by the Bank of England – excludes housing costs and is generally lower than the RPI. This is an arbitrary stealth attack to the incomes of millions of pensioners.

It is a cowardly way of taking money off our seniors through a sneaky technical change, rather than simply cutting payments. It is a breach of trust that will backfire in elections, as the over 60s are more likely to vote. It pre-empts the Hutton review. And it hits poorer pensioners harder. Remember an 'independent' review of public sector pensions is announced.

The Chancellor then states they are pensions are 'unaffordable', pre-empting and rendering the review it would seem, pointless. This action will heavily penalise millions of pensioners and their families.

Shame on Osborne and his Lib Dem lackeys, shame on the bankers for making our seniors and their families pay for their crisis.