We keep a very close eye on interest rates, because of course they directly affect the rate at which Armed Forces pensions increase.
Currently the index of inflation used to calculate this is the Consumer Price Index (CPI), but the Government have expressed an interest in possibly using another rate – called CPIH (Consumer Prices Index including owner occupiers’ housing costs – hence the ‘H’)
So we have been monitoring both rates and the table shows the latest position. It shows there is as yet no evidence that CPIH will provide a better deal for our members than CPI so we are not pressing for it.
But the table also shows that the Retail Price Index (RPI)- which used to be used – would provide a far better deal. Which is no doubt why the Government is firmly set against returning to it!