Making a fortune at pensioners’ expense

8:51am Thursday 25th October 2012 in Letters By Reader letter

WE all know that the inflation rate in September determines the rise in State Pension and other benefits.

Last year, (in spite of the Government shaving over 1% off the increase by using CPI instead if RPI) the rise was a respectable 5%, costing a begrudging Government many millions more than it would have liked to have spent.

Then what a surprise, when this year the rate of inflation in September is the lowest all year, at about 2%….so saving the Government a fortune at the pensioners’ expense.

How strange to have seen inflation falling, yet food, fuel, gas and electricity prices steadily rising! Call me cynical if you like, but I get a whiff of Government figure fixing behind the scenes. Mark my words….when September is done, the rate of inflation will be rapidly on the rise again.

Jim Cunliffe, West Park

Comments(7)

Bill Bradbury says...
10:23am Thu 25 Oct 12

Jim I am just surprised you have only just latched on to this annual phenomina. All Governments for as long as I can remember made sure that the annual inflation rate was at its lowest when the pension increase was due, usually the October rate, only to be followed by large increases.

That is why in a comment earlier this year I criticised Osborne's budget by claiming how generous he had been to pensioners this year when the reality was it had nothing to do with his generosity apart from last year him not making sure it was a low figure when it was set. Perhaps he had his mind on other things?

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i5tola says...
7:10pm Fri 26 Oct 12

As an outsider, please explain. Are you saying the government bases the entire year on what goes on in September ? What a silly and selfish idea. I'm an outsider but I kept up paying British taxes, voluntarily.

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Bill Bradbury says...
12:56pm Sat 27 Oct 12

i5tola wrote:
As an outsider, please explain. Are you saying the government bases the entire year on what goes on in September ? What a silly and selfish idea. I'm an outsider but I kept up paying British taxes, voluntarily.
In the "good? times" when inflation appeared to move quite frequently, mainly upwards, it was always a puzzle to me why the government selected October as the yardstick on which to base pension increases, as October's figure always appeared to be the lowest of the year. It may be something to do with how these statistics are recorded. It was common for November's figure to be higher and we will be interested in this November's figure. I will guess higher than October.

It's a mystery to me and perhaps someone with better knwledge can explain why?

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chasmcn says...
7:27am Sun 28 Oct 12

And now some idiot in the house of lords on his £300 a day expenses says pensioners should be doing some form of voluntary work for your pension .

Not that you have worked all your life paid into the system and in the twilight of your life you deserve a rest. In his words, Lord Bichard you are a "negative burden on society "

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Bill Bradbury says...
11:49am Sun 28 Oct 12

chasman, If someone paid me for all my voluntary work I would be a very rich man. It appears that when some enter the House of Lords or Commons they lose their brain cells.

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i5tola says...
4:41pm Sun 28 Oct 12

If pensioners did voluntary work wouldn't it impact the workforce even more? Or,would millions of pensioners working not amount to anything, production wise? In that case why are they out there working? It might make the the none functioning lords, brain dead happy.

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Bill Bradbury says...
4:55pm Tue 13 Nov 12

Read my first comment and then todays new inflation figures.

I think it's game set and match for me. Low inflation when setting pensions with large increases in subsequent months.

As this Govt. is keen on inquiries how about one on this. Too right to be cynical Jim.

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