However,
relief for public sector pensions depends not only on higher interest rates, but also on little or no increase in inflation, since public sector pension payouts are usually indexed.
«David Cameron's claim that he wants to maintain a discussion with the unions is undermined by him saying in the next breath that he's not prepared to negotiate on the specific issue of the change from the RPI to CPI
index for public sector pensions - which represents a massive cut in the value of pensions.
The greatest disappointment is that Liam Byrne kept his policy review role and the work and pensions portfolio (although Jon Trickett, the most encouraging promotion, has
responsibility for public sector pensions).