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State pension RPI boost

The Government faces paying out billions more in benefits and pensions after the headline Retail Prices Index (RPI) reached 5%.

September's RPI, which was last higher in July 1991, is commonly used by the Government to calculate pension increases for the coming year.

Pensions usually increase by 2.5% or headline RPI, whichever is higher. RPI is also used to set income support.

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