In Reply to: 2007 Pension Increase posted by Geoff Wheeler on 16 January 2007 at 13:37:27:
Apologies for jumping the gun on my earlier posting - I confused "the figures published in January" with "the figures for January".
The Office for National Statistics has now published the RPI for January 2007. At 201.6 the index stands 4.24% higher than it was in January 2006 (when it was 193.4).
Our pension increase will therefore still be affected by the cap which ignores increases in RPI over 4%, and we will still receive 2.4% in April.
Things are slightly better than the December figures, in that we have a lower base against which to measure next year's increase.
I assume I'm right in thinking that any capping is calculated each year without regard to any previous years' history? That is, if inflation next January turns out to be under 4% will we get just .6% of the actual figure, even if inflation over the two years is more than 8%?