RPI and CPI Fires the Grey Revolution

Published by Graham Tomlin for Credit Union Solutions Ltd in Central Government and also in Education, Health, Housing, Local Government

I was orphaned as an infant and was raised by my mother and two elder sisters my father having died from a smoking related cancer of the lung. This meant that we were substantially less well off than those families that lost a breadwinner from action in the war.

Budgeting for us involved a long red tin with a variety of compartments inside and a hinged cover with slots relating to the compartments below. There was a compartment for Rent, Gas, Electricity, Rates etc.

Credit for us came from Provident Financial so my shoes and clothes were paid for with Provident cheques.

Our financial position improved dramatically as my sisters began working while my mother continued to accept cash in hand cleaning work at a local dentist.

I started work in 1961 and I am still in full time employment although no longer with British Airways.

I have had three periods as a British Airways Pension trustee for the original APS pension fund. Whilst at BA I was an active trade union representative and later became a local Labour councillor.

Last Friday 15^th April, I became the third APS Member Nominated Pension Trustee to resign in protest at the switch from RPI to CPI for our cost of living rises. Mike Post was the first to resign closely followed by Cliff Pocock both MNTs and both formerly Pilots with BA.

The change from RPI to CPI was a result of George Osborne’s budget and was implemented by the ineffectual Steve Webb who amended the “Annual Review Orders” from RPI to CPI wiping away at a stroke at least £770M from BA pensioners and providing BA with a corresponding windfall.

How are BA pensioners taking this highway robbery you might ask, not well is the answer with Ascot Racecourse booked for a members meeting with 2,000 expected to turn up.

ABAP the British Airways Pensioners coordinating group has never been busier and every BA pensioner and BA employee paying into a pension should join.

There are a number of strands to the activity that needs to join together the protests from Teachers, Health workers, Council employees the Police and now British Airways staff and pensioners.

Firstly this is a political attack upon ordinary working people that paid into their pension diligently in the expectation of getting RPI increases not CPI. Accordingly we need a political response. I was outraged that as a member of the Labour Party my newly elected Leader of the Labour Party and his shadow Cabinet sat on his hands during the announcement of this change. So our first point of call will be to not vote for any candidate in any election that does not agree to revert to RPI for annual review orders. If this means I vote Green or UKIP so be it, loyalty goes both ways.

Secondly BA needs to review its position with respect to CPI because if it thinks that 26,000 irate pensioners will not adversely affect its business it is wrong.

Thirdly there will almost certainly be mass demonstrations in London and a lobby of Parliament.

Lastly I am hopeful that in the case of our pension scheme we will be able to get the facts before a judge so that all of the information about our pension fund going right back to privatisation can be reviewed. Failing that there will need to be a class action against BA for pension mis-selling since it was a part of our contract of employment that we joined the pension fund and there is a raft of evidence that BA promised increases relating to RPI with little or no reference to Annual Review Orders.

The facts are simple the Government of any complexion can change the basis of pension increases to whatever it likes and this has to stop. It is CPI this year but could be CPI minus 1 next year and CPI minus 2 the following year unless we take action now.

My mother gave me one thing that I treasure more than anything else, a sense of social justice coupled with enhanced righteous indignation.

A Government packed with millionaires who bank abroad telling me that I must tighten my belt and accept a reduced pension to ensure that bankers can continue to pay themselves bonuses does not wash with me. Neither will it I feel with my fellow pensioners or indeed voters. According to the Office of National Statistics in 2001 87% of people over the age of 65 voted whereas only 60% of the 18 to 24 year olds bothered. There are now 13 million over 60s which is 21% of the UK population which is a hell of a lot of unhappy voters.