pension are increased by the CPI which is catchup . AWOTE is a more realistic formula but the govt wont use it as it costs more , which means the govt is shortchanging the pensioners. AWOTE is based upon the average weekly wage and the pension should increase accordingly to increases in AWOTE. CPI is based upon a parcel of goods , and is not formulated around the cost of oil etc . These figures can be massaged by introducing or excluding various components Dont believe me ??? Get a copy of the smart investor and look at the CPI and AWOTE tables and work out both in incremental increases . They should be the same as CPI increases they tell you increases with/and to the average weekly wage (AWOTE ),
Now you can see why the pensioners squeal about the cost of living and their decrease in spending power.
Ask your local MP about this and watch him/her squirm....
