Inflation at 5.5%
 

It’s just been announced on the news that inflation has risen to 5.5%.

But the good part is that last month inflation was at 4.7% meaning that all government pensions, benefits etc should be increased by 4.7% next April.

What’s the betting the Brown and Darling, the prestidigitators of the Labour party, will find some sneaky way not to pay 4.7%.

Re: Inflation at 5.5%
 

Still not sure where they get these figures from.Inflation at Benitowers is running at nearer 30%.:confused::confused:

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Got to agree Beni, my lecky has gone up by £30 a month alone, looks like I'm on a diet:eek:

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Are the benefits not set on the November figures JB always thouht they were, but I maybe wrong:confused:

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Awarding pay increases on a percentage basis is even more obscene and only serves to widen the gap between those who have and also make the rules and those who have not and have to follow the rules.

Whether you earn £50k or £5k the price of goods rises by the same cash amount for everyone.

Re: Inflation at 5.5%
 

I was always under the impression that September’s inflation figures were those used by the government when calculating the next April’s benefit increases.

No doubt someone will come up with a definitive answer?

Re: Inflation at 5.5%
 

You are right Jam Butty - I found this in old news from 2004
"Inflation for September - the month used for upgrading a range of benefits"
here -
Surprise fall in inflation makes rate rise unlikely - Business News, Business - The Independent

Re: Inflation at 5.5%
 

The figure being quoted now is 5.2% for September and the newsreader stated quite clearly that it is this September’s figure that will govern the level of increases next April.

It will be interesting to discover how B & D will wriggle out of it, because surely they will somehow and we will get just 2%. Or in view of the financial climate there will be a freeze on increases.

I can’t remember who it was who introduced this scheme but September was chosen because traditionally it was the month were inflation was always at its lowest for the year.

It would be far fairer if the average inflation for the previous year were used. But then fair is not a word that is in the government’s vocabulary.

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Right again Jam Butty:) - it shows 5.2% on the official gov site here-
National Statistics Online

They wouldn't dare give us pensioners less than that because Age Concern are lobbying for more

Re: Inflation at 5.5%
 

Oh! Wouldn’t they?

Brown has been throwing money around as if it was confetti and not only is there nothing left in the kitty but National Debt is rapidly approaching £1 trillion. If UK were a Plc the receivers would have been in long ago.

Still we will find out next April.

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i am fairly certain that HMG is obliged by THE SOCIAL SECURITY ACT to uprate benefits/pensions/allowances in line with the inflation figures for the year ending in september of the previous year.

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I’m sure that you are right in that assumption but the government passed the act and they can change it if they want to. Or find a new way of calculating inflation so that the ‘new’ figure is much lower than the true one.

In fact the alleged ‘true’ figure isn’t as true as it should be.

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Not sure what rise in benefits I got this year but I do know that it did not cover the Electric bill rise let alone everything else.I'd rob a bank but I'd be stealing my own money.:eek:

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Ya Beni and you'd probably get caught too, unlike the seasoned crims who seem to be imune:rolleyes:

Re: Inflation at 5.5%
 

I'm no expert but I think the facts are these: the Consumer Price Index (CPI) has risen to 5.2% and the Retail Price Index (RPI) has risen to 5.0%. Benefits and state pension increases for April 2009 are based on the September 2008 RPI figure and so will rise by 5.0% next year.

Willow said that MPs will be able to vote themselves a higher than inflation pay rise to cover themselves. I haven't got the exact figure to hand but I think that this year MPs voted themselves a 1.9% rise in line with other public sector workers, the 7th year in a row that the rise has been lower than inflation.

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thanks fer clearing that up Mr Pope, perhaps you may know if the opposition ever took Less than inflation oer their 3 electoral terms? i suspect not, but can stand to be shocked.

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Tax credits award told us in July that we would have approx 4 quid increase in April. Does this September reckoning mean I can disregard that and look forward to more? :D

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I think you may find that pay increases for MPs are usually a cross party agreement cashy, not just set out by the party in power, if I remember rightly, MPs pay rises are recommended by an independant body. But even so percentage pay increases are an anomaly, 1.9% on say £35000 and 5% on £95 are vastly different in real terms. ie around £660 as opposed to £4-90p

Re: Inflation at 5.5%
 

Does my memory serve me correctly? - in the 50s and maybe even 60s, pay rises were campaigned for in ££££ not %%%%

A percentage rise in a low wage still makes for a low wage.
Whoever started this percentage rise system has just widened the gap between the richest and the poorest

Re: Inflation at 5.5%
 

:D Thanks Greg. I did say that they are able to, it's nice to know that in spite of being able to they don't intend to.


My working life doesn't extend back that far but I do wholeheartedly agree with you that percentage increases only serve to widen the gap between higher and lower pay. A £1 increase in prices is felt more by a lower paid worker too so to be 'fair' it should be the lower paid that get a higher percentage increase than the higher paid, on a sliding scale. Can't see that going down well with fat cats though.

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Your quite right Margaret, I can remember when I was an happyrentice, the joiners got 2 pence an hour raise and we got a penny, much fairer, but they don't do it now because how it would look, it don't seem much when an MPs salary raises by 1.9% but if it was put in money terms it looks outragious

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Why what do MP's get paid?

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You will get about 5.2 -5.5% increase why oh why whatever is happening do you have to moan about it. I got no increase this year just a lump sum one off non consolidated increase of £200 less tax. which equated to about £140. If I was going to get the highest increase in about 17 - 18 years I would be happy.

Re: Inflation at 5.5%
 

Be quite honest Neil I just ain't got a clue these days, the figures I used were insidental, just to explain my point. I actually think and MPs pay could be in the region of £50K plus Xes, but if I'm wrong I'm sure some one will correct me:D

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The basic is just over 60k, + expenses & allowances

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It's easier for the goverment to take money from the citizens through inflation than it is through taxes. It's how the Germans got rid of their debt afer the first world war. Yet when taxes increase by pence per year we hit the roof. Bonkers.

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If something is wrong I have the right to moan about it if I want to.

There are many other threads where other people have a moan at something but I don’t notice you having a go at them. But there are no ‘brownie points’ to be gained there.

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Agreed. Seems one or two on here are just waiting to pounce on JB no matter what he says.

He puts a post in about reading meters, someone says he spoils a thread. It was only an observation, only one person commented on it. And it was the first thing that sprang to my mind to be honest. Now we have someone having a go, because he's moaning about this. So what! Isn't that what this forum is partly about, being able to vent your spleen when you want. You never moaned about owt on here stan accy?:(

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Nice one Greg, I've now put that in my favourites:D