The UK Government could be in line to cut at least £100bn (€121bn) off its bill for public-sector pensions over the next century, thanks to a change in the measure used to calculate inflation contained in the recent emergency Budget.

According to Neil Record, a currency fund manager and expert on public-sector pensions, the change from the Retail Prices Index to the generally lower Consumer Prices Index might mean the average index-linked pension is cut from about 43% of salary to 36%, because it will increase more slowly over time.