UPDATE: On the evening of Thursday 16 April the government and UK Statistics Authority (UKSA) agreed to extend the RPI reform consultation deadline to 21 August 2020. You can view the exchange of letters between Sir David Norgrove, Chair of the UKSA, and the Chancellor here with confirmation of the revised deadline also confirmed on GOV.UK here. We warmly welcome the decision, which provides everyone with more time to consider and complete their submissions. We would like to thank those clients, consultants, peers and industry bodies who requested an extension to the deadline. Below, we set out the letter from our CEO, Abdallah Nauphal, to the Chancellor on 24 March, 2020.
Request for a deadline extension in unprecedented times (sent on 23 March, 2020)
I am writing to you regarding the consultation on the reform to Retail Prices Index (RPI) methodology, published on 11 March 2020.
Given the unprecedented situation in the UK at this time, we would urge you to extend the deadline of the consultation beyond 22 April 2020.
We are concerned that the greatest impact of the proposed changes will fall on the more than 10 million beneficiaries of defined benefit pension schemes. Many of these beneficiaries will be elderly and, unlikely to be focused on the importance of these proposed changes to their future incomes at this time.
Moreover, difficult working conditions will make it impossible for many to liaise and craft a considered response.
Other official sector authorities including the Financial Conduct Authority, European Securities and Markets Authority, and Basel Committee on Banking Supervision have all either suspended open consultations or delayed the deadlines. We kindly request Her Majesty’s Treasury to do the same.
Yours faithfully and with great expectations,
Call: 0207 321 1118
Proposed changes to RPI
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