Came across this a few days ago:
http://www.theguardian.com/commentis...ment-inflation
Quote:
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The story begins with a single paragraph in the emergency budget a few weeks after the 2010 general election. Buried in its 100 pages was a small section stating that future benefits, tax credits and public sector pensions for retired emergency workers, civil servants, council employees and NHS staff would rise in line with a different measure of inflation: the consumer price index (CPI). Previously, the default increase was the retail price index, RPI – which has historically averaged about 1% higher.
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Quote:
The government has also created purely political exceptions for the elderly and businesses – overtly acknowledging it wants to ensure they “do not lose out”.
Perhaps the best proof of the severe impact of this policy is the OBR’s own warning that unless the policy is reversed after 2020 “the value of the benefits would fall dramatically, relative to the living standards of the rest of the population”. And let’s not forget, this is before the upcoming £12bn cuts.
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If this article's claims are true then this dwarfs the benefit cuts in this Emergency Budget? Strange no one made as big a fuss over this if this is correct .. or did they?