- NewsThe Telegraph
The Chancellor has slashed future pension incomes for more than 10m retirees and will not provide any compensation for an inflation switch that will cost investors above £100bn. Britons with pension increases linked to the retail prices index (RPI) will lose thousands of pounds after Rishi Sunak pressed ahead with reforms that will save the Government around £2bn every year. The Treasury revealed that RPI, a measure of inflation deemed flawed by the official statistics regulator, will be effectively scrapped in 2030 and losers from the changes will receive no compensation. However, the Chancellor resisted bringing in the changes as soon as 2025 following a consultation. The move will tie annual increases in incomes from defined benefit pension schemes to a rate of inflation typically one percentage point lower than RPI, a blow to more than 10m present and future retirees. Industry estimates suggest it will also cost buyers of index-linked gilts – government bonds that track inflation – more than £100bn while increasing the pressure on many company pension schemes. Investments and pensions linked to RPI will now track the lower consumer prices index including housing costs (CPIH).
- CelebrityThe Independent
Petition gains traction following Johnny Depp’s departur from the Fantastic Beasts franchise