Joint consultation on RPI/CPI changes delayed

The joint consultation between the government and UK Statistics Authority (UKSA) on proposed changes to the Retail Prices Index (RPI) has been delayed until the budget on 11 March.

In a letter to the Chairman of the Economic Affairs Committee, Lord Forsyth, Chancellor Sajid David confirmed that the consultation will be launched at the budget and will remain open for responses for a period of six weeks, closing on 22 April.

The consultation, originally scheduled to launch this month, was announced following recommendations by UKSA to scrap the RPI, describing it as “not a good measure” of inflation.

The proposals focused on whether RPI and CPIH should be merged, and if so, when between 2025 and 2030.

In the letter, Javid also confirmed that both the government and UKSA would respond to the consultation before the parliamentary Summer recess.

He wrote: "The consultation has been scheduled to launch this month. However, following the General Election and my confirmation of the Budget date, I have agreed with UKSA that the consultation will now launch at Budget."

Insight Investment last year urged schemes to take proactive action to engage with policy makers on the potential changes, describing the potential shift as an “immediate concern” for schemes.

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