Measurement of Mortgage Interest Payments within the Retail Price Index

[Dic]

I can't see any mention of this subject in this forum. The government are intending to adjust this item in the RPI to a smaller measure of interest.  As I see it, this will affect anyone whose income is linked to the RPI. When mortgage interest rates collapsed last year the effect on the RPI resulted in most index linked pensions remaining static for 2009. If the RPI calculation remained the same we could have expected a compensatory rise in the RPI when interest rates recover. However, our government in their devious way have decided to alter the way the RPI is calculated which will mean the losses incurred in pensions in 2009 will never be fully recovered.
There is a "consultation" on this "proposal" with a closing date of 22nd January 2010.  I doubt if this consultation is genuine but it might be worth sending them your thoughts on the subject.
http://www.ons.gov.uk/ons/about/consultations/measurement-of-mortgage-interest-payments-within-the-retail-prices-index--2009-/index.html

[John]

Do you think this sad excuse for a government would bother listening
to anyone?

They have never done before, so why should they now?

[Wrinkles]

The RPI is farcical. Just think who sets it and who monitors and manipulates it and you will rapidly see that it is geared in the Governments favour and it isn't worth a light.