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Benefits: Deflation

Volume 712: debated on Monday 6 July 2009

Question

Asked by

To ask Her Majesty's Government further to the Written Answer by Lord McKenzie of Luton on 1 June (WA 8), by what date deflation-proofing legislation would need to be commenced to enable any deflationary movement in the retail prices, Rossi and average earnings indices of September 2009 to be taken into account in the re-rating of public sector pensions; and what preparations they have made for any downrating. [HL4043]

I refer the noble Lord to the Answer my noble friend Lord Patel of Bradford gave him on Tuesday 3 March (Official Report, col. WA 141). The Government are committed to maintaining at least the current cash value of state pensions and the same would be applicable for public sector pensions. The existing legislation already allows for this.