Index Linked Pension Increase
So with this year's September CPI at 2.2% pension increases will be at that figure instead of 2.5% (August's figure) or 2.7% (October's figure) if those months happened to be used instead. Makes we wonder why an average of the year's figures aren't used. A half point swing either way must make a huge difference in how much has to be paid out in future and can happen in a heartbeat. I guess it's in the chancellor's favour this year but could just as easily not have been (as in the 5.2% increase of last year). Looking at the changes over the period Oct 10 - Sep 11 for example the median would be about 4%. Boggles me mind to ponder how much money 1.2% less on everyones pension increase would save (not just in that year but over the next 20 or whatever).
Seems strange to gamble on what it might be in one month, wouldn't it make more sense to average it out?