It is now clear that using CPI as the basis for pension increases is lawful.
It has been announced today that the legal challenge that was launched in the High Court failed, with the judges deciding that the Government had acted lawfully when it changed the basis for annual increases in public sector pensions to the lower CPI from the traditionally higher RPI.
An appeal to the Court of Appeal is expected, and you can keep in touch with developments via our website.
At the moment we expect that 5.2% will be the annual pension increase from April 2012, as this was the September CPI figure (RPI was 5.6%).