| answer text |
<p> </p><p>(holding answer 25 March 2014)</p><p> </p><p> </p><p> </p><p>The Consumer
Price Index (CPI) is used to set the inflation target for the Bank of England's Monetary
Policy Committee; it is the headline measure of inflation in the UK as reported by
the Office of National Statistics, and is an internationally comparable measure.</p><p>
</p><p> </p><p> </p><p>CPI is therefore considered by the Government to be the appropriate
index to provide protection from inflation, which is why both the Armed Forces and
Civil Service pension schemes use this measure.</p><p> </p><p> </p><p> </p><p>The
Armed Forces continue to benefit from the only major public sector pension scheme
that is non-contributory.</p><p> </p><p> </p><p> </p><p>The information requested
is shown in the following table. These figures are estimates:</p><p> </p><p> </p><p>
</p><table><tbody><tr><td><p>Financial Year 1 (2011-12)</p></td><td><p>approx. £48
million</p></td></tr><tr><td><p>Financial Year 2 (2012-13)</p></td><td><p>approx.
£67 million</p></td></tr><tr><td><p>Financial Year 3 (2013-14)</p></td><td><p>approx.
£85 million</p></td></tr></tbody></table>
|
|
