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02/12/2011
Pension Switch Is Legal, Says Govt
A High Court has ruled that the government’s policy switch, used for pension inflation proofing, is legal.
Trade unions brought a judicial review of the way Consumer Prices Index (CPI) was now being used instead of the faster-rising Retail Prices Index (RPI) for pensions inflation proofing. Now the High Court has ruled that the government's switch was lawful.
This decision will affect the value of millions of public sector pension increases.
Already more than 2 million workers are estimated to have taken part in the strikes across the UK on Wednesday.
The strike saw public service workers take a stand against having to work longer and pay more before receiving their pensions.
The walkout has been hailed as the biggest of its kind for generations. Hospitals, schools, ports and government offices were closed or disrupted during the strike.
However the Chancellor, George Osborne, said that strikes "will not achieve anything" and urged the unions to resume negotiations.
Following this decision the unions were given permission by the judges to appeal to the Court of Appeal on some of the issues raised.
(LB)
Trade unions brought a judicial review of the way Consumer Prices Index (CPI) was now being used instead of the faster-rising Retail Prices Index (RPI) for pensions inflation proofing. Now the High Court has ruled that the government's switch was lawful.
This decision will affect the value of millions of public sector pension increases.
Already more than 2 million workers are estimated to have taken part in the strikes across the UK on Wednesday.
The strike saw public service workers take a stand against having to work longer and pay more before receiving their pensions.
The walkout has been hailed as the biggest of its kind for generations. Hospitals, schools, ports and government offices were closed or disrupted during the strike.
However the Chancellor, George Osborne, said that strikes "will not achieve anything" and urged the unions to resume negotiations.
Following this decision the unions were given permission by the judges to appeal to the Court of Appeal on some of the issues raised.
(LB)
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