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  1 month ago

Pensioner anomalies ( you just can't win can you ) ?

Forgive me once again for posting yet another boring "topic" but please stick with it as it may be of some interest ( eventually ).

You may remember a couple of months ago that the government removed the "average earnings" segment of the state pension "triple lock" for this year as they stated the expected 8% rise this would have provided to state pensions as being an "anomaly" and this was true in that workers returning from furlough thus increasing wages by 20% in some cases) and the fact that many low paid workers had lost their jobs during the pandemic did indeed skew the average earnings index for this year which I must agree is the case.

Now let's fast forward to yesterdays inflation figures for September. This rate actually unexpectedly fell from 3.2% in August to 3.1% for September.
Every sector in the basket of goods used to calculate the CPI inflation rate ROSE with the exception of a miniscule fall in clothing and footwear but one massive FALL in prices for the hotel & restaurant trade or (hospitality) sector. This was caused because in September last year the "eat out to help out" scheme ended and certain changes to VAT caused a skewing of the figures for this sector when taken September 2020 to September 2021. So one "anomaly" in the basket of goods was responsible for the fall but this wasn't recognised and removed as the average earnings part of the triple lock had been.

It just so happens that next Aprils state pension increase is calculated on the CPI inflation rate for September 2021 (3.1%). The government has chosen to remove the "anomaly" that would have increased pensions by 8% but totally ignored the anomaly that effectively reduces the state pension increase from a more realistic 3.5% to 3.1%.

You just can't win at the casino when the "house" is playing with loaded dice can you. LOL.

I think it would be a far more equitable system to average out the whole years inflation rate , rather than selecting just one particular month for calculating state pension increases going forward. What do you think ?

Afterall come this December inflation could be well pushing close to 5% in many analysts opinions.

Disclaimer:- Please can I make it quite clear to everyone that I'm still quite a number of years from qualifying for my state pension and as such I can't be categorized as holding a vested interest in my topics conclusions. LOL.

What do you think folks ?


  1 month ago
My poor husband has lost so much since he retired. Lucks just not on the old persons side Reply


  1 month ago
i am going to be a coffin dodger in 2 weeks they have screwed up a bit but i will manage! Reply


  1 month ago
See below! Reply


  1 month ago
i am a pensioner and have been for past 27 years been receiving a pension but cant trust the government to do what they say they are contradictory in all they say and do so will have to wait till april to see what happens wont hold my breath with this lot!! Reply

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