Paphos People

Treasury could face huge hit as inflation rise pushes up pension payments
By Daily Mail Reporter
Last updated at 12:58 AM on 15th October 2008

Rising inflation means the Government will have to pay out an extra £1.3billion this year in state and civil service pensions.
It is September's RPI (retail prices index) figure which is used to calculate the increase in the following year's pension and benefits payments.
With RPI at 5 per cent, this should mean the full state pension for a single person will increase by £4.55 to £95.25 in April next year.
The National Pensioners Council has called for an immediate increase in the state pension as elderly people struggle to cope with expensive food and fuel costs.
Yesterday the Department for Work and Pensions refused to confirm the rise. It said an announcement will be made before Christmas.
It will cost the public purse an extra £900million to pay the higher state pension bill, said pension experts Watson Wyatt.
This is because Labour had predicted the basic state pension would cost £52.7billion in 2009-10 - based on an inflation rate of 3.25 per cent.

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Clive of Payia

Oh goody - my pension is also linked to the September RPI figure

chris

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Merda taurorum animas conturbit