Only 33 MPs have voted to call on the UK Government to re-introduce the Retail Price Index (RPI) as the inflation measure used to calculate pension payment increases for occupational pension schemes.
John McDonnell, the Labour MP for Hayes and Harlington, introduced a proposal in Parliament on 1 March for MPs to force the Government to return to the RPI-based calculation, which has historically been generally higher than the Consumer Price Index (CPI) measure the Government introduced last year.
232 MPs voted against McDonnell's proposal, after the House of Commons debated the issue. 108 speeches were made on the matter, but very few opposition MPs were in the chamber to offer McDonnell any support.
The debate came about after ane-petition calling for a debate on the switch from RPI to CPI received over 109,000 signatures.
Support from more than 100,000 individuals was needed for the issue to be discussed in Westminster.
The signed petition opposed the switch from RPI to the lower CPI. A joint case is already running through the Court of Appeals as in December the High Court decided the change was 'lawful'.
The plea has been supported by the Association of British Airways Pensioners, representing the interests of all British Airways Pensionersm and organisations such as the Service Pensioners Council (PSPC), the National Pensioners' Convention (NPC), the Civil Service Pensionsers' Alliance (CSPA) and the Occupational Pensioners' Alliance (OPA). All of them have called upon their members to support the action.
"Many workers in the public and private sector have contributed to their pensions on the understanding that on retirement these pensions would be increased each April by the preceding September's RPI rate," the petition reads.
"The change (to CPI) will mean a steady reduction in spending power for pensioners as they progress into their retirement. Given the promises that have previously been made, the RPI measure should be reintroduced without delay to ensure that the spending power of these public and private pensioners is maintained."
azeevalkink@wilmington.co.uk
