Index Linked Pension Increase
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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?
Seems strange to gamble on what it might be in one month, wouldn't it make more sense to average it out?
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It is averaged out! The September to September figure show the rise between those dates..... If the October to October figure is higher then that will mean that next year the September figure will reflect any real change that has happened in Sep or Oct and it will presumably be higher.
Some years the Sep figure may seem lower, but on others it will seem higher but over all it will average out. You have only noticed it because it seems lower than the surrounding months, on other years it will have been higher and you will not have given it the time of day
Some years the Sep figure may seem lower, but on others it will seem higher but over all it will average out. You have only noticed it because it seems lower than the surrounding months, on other years it will have been higher and you will not have given it the time of day
I don't own this space under my name. I should have leased it while I still could
Jambo, while that is true using just the one 'low' month can open up the opportunity for rigging the rise and delaying the pensions increase for 11 months.
Fuel duty increases could be delayed to October. Other industries whose product is in the basket could be persuaded to delay increases etc. Of course we would not expect a Tory chancellor to stoop so low, would we?
Fuel duty increases could be delayed to October. Other industries whose product is in the basket could be persuaded to delay increases etc. Of course we would not expect a Tory chancellor to stoop so low, would we?
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pension freeze
If it is Duncan-Smith talking, it is the state pension he would referring to. At the moment there is a triple lock mechanism for these increases. They are increased by CPI, Average Earnings Index or 2.5% whichever is greater - so for next year it would be 2.5%, unless tinkered with!
index linked pension increase
