This is expected to reduce the future change in RPI from 2030 onwards by 1% per annum.
This decision has been made despite substantial concerns being raised during the 2020 consultation, from a broad range of market participants. Another chapter in the RPI saga has drawn to a close, but with ten years until the decision is implemented, we struggle to believe that this is the final chapter, and we will continue to monitor this issue closely.
Click here to see HM Treasury's full response to the consultation.
Daily Telegraph: Inflation shake-up set to hit incomes for 10m private pensions
Financial News: UK retirees set to lose billions in pensions inflation switch