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UK Pensions Minister: CPI "a better fit" than RPI

8 December 2010 Last updated at 17:15 GMT

UK Ministers have abandoned their plans for implementing new rules that would have drastically reduced the pensions of private sector workers.

The rules would have forced company pension schemes to use the Consumer Prices Index (CPI) rather than the Retail Prices Index (RPI) to uprate pensions.

However, Pensions Minister Steve Webb said CPI was a "better fit with pensioners' year by year experience of inflation".