Support 1st March lobby against pension cut

Support 1st March lobby against pension cut

Prospect members are urged to join a lobby of parliament on March 1 in protest at the government decision to increase public service and state pensions in line with the Consumer Prices Index instead of the Retail Prices Index. The changes will also affect some private sector scheme members.

Please note, the date advertised in reps' magazine Report is incorrect. The lobby's timing has since been brought forward to 1st March after a key parliamentary vote on the issue was fixed for this Thursday (17th February).

The lobby is being organised by the Public Service Pensioners' Council, Civil Service Pensioners' Alliance, Occupational Pensioners' Alliance, National Pensioners' Council and Age UK. It will include a rally meeting from 1.15pm-2.15pm in Committee Room 6, which all MPs are invited to attend. For more information and materials see the CSPA website.

Members are also urged to write to their MP  before this Thursday (February 17) when MPs are due to vote on the Social Security Benefits (Uprating) Order, which would apply the change to the state second pension and the draft Guaranteed Minimum Pensions Increase Order 2011.

This vote will be the first opportunity MPs have of voting on the announcement made last June. A draft letter focusing on 17 February is available for members to amend according to their own circumstances. 

By being linked to CPI, affected pensions will go up by about 15% less than had the RPI link been maintained – the CPI has consistently provided a lower measure of inflation than the RPI.

Most experts agree that increases are likely to be on average 1% lower each year as a result – a very serious loss over a pensioner's lifetime.

In the private sector, schemes that originally came from the public sector (for example, the BT pension and the nuclear industry's Combined Pension Scheme), are also affected by this government policy.

The impact on other private sector schemes will depend on their rules and the legislation the Department for Work and Pensions brings forward to implement the change.

In addition many private sector members of defined-contribution schemes will be affected by the large reduction in value of their state second pension.

This change is due to apply from April 2011 to the state second pension, public service pensions and some private occupational pensions, and from April 2012 to the state basic pension as well.

Meanwhile sector specific letters to send in protest to your MP in advance of the 1 March lobby will be available over the next day or so. Energy members in the CPS can download a letter straightaway.

Please note that sending a letter in your own words will be more effective than using a template. These drafts are meant to act as guides.

Prospect has also prepared a briefing particularly relevant to members at BT,  on behalf of whom the Connect sector has already been campaigning.

The CPI/RPI CutStop campaigns page contains more information relevant to all members.