Retail Prices Index

Debate between Baroness Sherlock and Lord Gardiner of Kimble

Wednesday 14th November 2012 Lords Chamber

[Lord Gardiner of Kimble]

It is obviously one of the considerations, but there will clearly be a number of considerations. There are effects in terms both of the liabilities for index-linked gilts as well as the assets. However, the point that I wish to make is that there is a process by which all these considerations are made and there are regular reviews of the RPI.

[Baroness Sherlock]

My Lords, in their first Budget, the Government sneaked through a decision to link future benefit increases to CPI rather than RPI, a move which the IFS said would save about £5.8 billion by 2014-15, taking that money out of the pockets of the poorest. If RPI does change, will the Government revisit that decision?

[Lord Gardiner of Kimble]

My Lords, again, I return to why we are where we are with this consultation. Among the key indexes that I have learnt about that I did not know much about is the Carli index. This index has now been discontinued by every other large advanced economy. The IMF has concluded that Carli, which is a major part of the RPI, is not an appropriate formula for inflation measures. On the point about pensions, this is a Government who have made the largest ever cash increase to pensions, to £107.45 a week. Of course, the Government’s triple guarantee means that the basic state pension will increase by the highest of growth in average earnings, the CPI or 2.5%.

Living Wage

Debate between Baroness Sherlock and Lord Gardiner of Kimble

Thursday 8th November 2012 Lords Chamber

[Lord Gardiner of Kimble]

The Government are determined to ensure that there is a vibrant economy with employment prospects. Clearly, one reason we emphasise the voluntary side—encouraging people to take up the living wage—is precisely to ensure that there is business flexibility. It would clearly be unhelpful for job creation and retention if we were to move from that position.

[Baroness Sherlock]

My Lords, it is very good to hear of the support of the Mayor of London and the Government for the living wage. Can the Minister assure the House that the Greater London Authority and the Conservative Party are paying the living wage?

[Lord Gardiner of Kimble]

I am most grateful to the noble Baroness—I checked with Conservative Central Office this morning because I rather thought that this might come up. I can assure her and, indeed, the House that Conservative Central Office not only pays the living wage but above the living wage.