@bigdave The fact they are using CPI and not RPI is a discrace, was it not one of the changes Cameron made before Nick Clegg realised he could get involved. It is only going one way, did I read the average cost of a new car has increased by 38% over the last decade? The only reason we are still here is the fact second hand values are holding up well, the minute these drop we are doomed. Doomed i’ll tell ye.
I totally agree with you wmc.
It was Gideon Osborne as Chancellor back in circa 2010 who changed benefit rises from RPI to the (lower) CPI. Thus, over the last 10 years CPI has fallen further and further behind real inflation. Now with this 0.5% rise next April, I foresee real problems ahead.
For example, if a Euro deal is not done and tariffs are imposed on imports from January 2021 etc and the value of the pound drops (as expected if there is ‘no deal’), it means prices next year will forge ahead.
Then, it will take until April 2022 for benefits to rise again (based on Sept 2021’s CPI rate) so people will have to struggle by until any benefit increase works its way through for the poorest in April 2022.
As regards Motability, as you say if it were not for the used car market holding up……..