Railways Pension Scheme - Indexation

My Ref:  MRP32/1

 

27^th November 2025

 

Circular No: NP/207/25

 

To: The Secretary All Branches & Regional Councils

 

Dear Colleague,

 

RAILWAYS PENSION SCHEME – INDEXATION

 

Please be advised the following resolution was received from our Wessex Regional Council:

 

“The Railway pensions are always increased in April annually based on the Septembers CPI rate since it was brought in by the Conservative and Lib-Dem coalition government in 2010 to use the CPI.

 

This year retired staff received a derisory 1.7% increase, this is way below the costs of utilities council taxes, rents and other costs.

 

Had the RPI been used to calculate the increase this would have given them a 2.7% increase, so every year the September CPI was used to calculate the railway pension increase railway pensions have devalued a lot. 

 

This branch believes that the RMT propose to the railways that in future all increases on the pension is based upon a more realistic benchmark and not the CPI, as railway pensions are being severely eroded by inflation, therefore putting many of our retired and future retired members into poverty.

 

The RMT must launch a political and industrial campaign at all levels for improved pension yearly increments. We must also utilise our sponsored MPs to propose this in parliament.”

 

On 26th November 2025, the RMT Member Pension Schemes Subcommittee submitted the following report which was adopted by the NEC:

 

“We note the sentiments of the resolution in respect of the hardship that the method of CPI indexation is causing RPS pensioners. The decision taken by the UK Government in 2011 to change the method of indexation used in the Pensions (Increase) Act 1971, from RPI to CPI, has had a detrimental effect on pensioners.

 

While it is noted that RPI is to be abolished in 2030 we believe that the method of indexation which replaces RPI needs to be established which doesn’t leave workers worse off in retirement.

 

In light of the resolution, we instruct the General Secretary to write to the Government regarding this unfairness and raise our concerns with the RMT Parliamentary Group.”

 

In accordance with the decision, I will proceed with the requested actions.

 

I will keep you advised of developments.

 

Yours sincerely

 

Eddie Dempsey

General Secretary