§ Mr. Barry Field
To ask the Chancellor of the Exchequer what were the projected rates of inflation for the indexation of Civil Service pensions for the last five years; and what were the yearly actual inflation figures.
§ Mr. Ryder
[holding answer 27 November 1989]: Under the Social Security Pensions Act 1975 Civil Service pensions, in common with other public service pensions, are uprated in line with movements in the retail prices index (RPI) in order to maintain their value. Until 1980 the uprating was on the basis of the forecast RPI but since then it has been on an historic basis, which is a simpler and more certain method. Accordingly no RPI forecasts are now made for the purpose of uprating these pensions.
Over the years there have been some changes in both the timing of the uprating periods and the date from which the upratings are paid. These are shown in the table.173W
Pensions increase (per cent.) Paid in Based on movement of prices between 1986 1.1 July 1986 May 1985- January 1986 1985 7.0 November 1985 May 1984- May 1985