Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment she has made of the potential effect of the Government’s proposed reform to the Retail Prices Index methodology on pension schemes.

As you will be aware, at the Budget in March the Government published, jointly with the UK Statistics Authority (UKSA), a consultation on reform to Retail Prices Index (RPI) Methodology. The consultation sought views on whether UKSA’s proposal to reform RPI should be implemented at a date other than 2030, and if so, when between 2025 and 2030. As part of the consultation, the Government invited views on matters including how the holders of the Government’s issues of index-linked gilts, all of which use RPI as their reference rate, will be affected by the implementation of reform.

The consultation closed on 21 August, since when the Government has been considering the responses to the consultation. The potential effect of the proposed reform is a matter for HMT, which is the lead government department. The Government and UKSA’s response to the consultation will be published alongside the Spending Review on 25 November.