Retail Prices Index (Error)

Part of the debate – in the House of Commons at 10:48 am on 18th December 1987.

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Photo of Mr Nicholas Scott Mr Nicholas Scott , Chelsea 10:48 am, 18th December 1987

That is a more general point. The Government are pledged to protect pensioners from inflation, and the RPI seems to be an entirely appropriate index to use in those circumstances. The administrative cost of making these payments will be somewhat in excess of £5 million. That is what even this broad brush approach will cost. The more precisely we target repayments to actual loss, the greater are the administrative costs. I hope that charities will not be alone in benefiting from the social security money and the money for public service pensioners. I hope that those who receive payments will benefit. The Government have no legal obligation, but I accept that they have a moral obligation.