pensions

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peter herke peter herke
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pensions

George Osborne said in his budget statement that unlike Gordon Brown- he would be straight forward with the public- no hidden agendas.

He recently outlined the triple guarantee for Increases in state Pensions- unlike Labour whot only chose RPI or 2 1/2 % hee would also add increase in average earnings, the highest of the 3 in any one year would be used to set the pension increase  for next next year.
Sounds marvelous doesn't it?

What he failed to emphasize is that
a. the forecast of rise in average wages is likely to be less tha 2 % for next year
b. RPI is running at 5 % and could still be that in September 2010  the applicable month for next Aprils increase

BUT in this triple bottom guarantee RPI is replaced by CPI which is running at 3 %.
So George got some great publicity while giving pensioners 2 % LESS increase next year than George Brown promised, just as the increase in VAT hits them.

Less Devious? You be the judge

Less Devious? You be the judge.
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