Not sure if this has been spotted already, but this was in the papers yesterday. In short, buried in the small print of the Budget was the statement: "1.106 The Government will use the CPI for the price indexation of benefits and tax credits from April 2011. The CPI provides a more appropriate measure of benefit and pension recipientsâ inflation experiences than RPI, because it excludes the majority of housing costs faced by homeowners (low income households are subsidised separately through Housing Benefit, and the majority of pensioners own their home outright), and differences in calculation mean it may be considered a better representation of the way consumers change their consumption patterns in response to price changes. This will also ensure consistency with the measure of inflation used by the Bank of England. This change will also apply to public service pensions through the statutory link to the indexation of the Second State Pension." Note the last sentence. Technical stuff, but in short it means that pensions will not increase as fast in the future as they have in the past. Your pension - whether you are getting it already, or paying into it now - is now less valuable than before the budget. Personally I find this morally vile. It affects those who have completed a period of service and who are being paid a pension they earned - their standard of living will slip gradually year on year as against the standard that they were lead to expect. For Civil Servants, the bit in the Civil Service Pensions Guide that states: "Your pension is guaranteed to increase in line with inflation, as measured by the retail prices index (RPI)" appears to have been ignored, or thrown away. I am led to believe that the difference will be around 1/2% per year minimum. That does not sound much, but if inflation is at 2%, and your pension increases by only 1% o 1.5%, it will pretty soon lose ground - and that's worse of course for those still contributing - they've got longer to be affected by it. So, doing our bit to get the nation out of the ole that Mr Brown dug for us - or a sneaky way to hit out at those who cannot object by strike action - srving Service personnel and pensioners?