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Parties on the other side might push for consumer price indexation, or no indexation at all.
The amount given in respect of each child - the "child element" of CTC - will increase by £150 above consumer price indexation in 2011-12 againgain by £60 in 2012-13.
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He said the planned shift from indexation at the consumer price index to the bond rate was designed to end a "hidden subsidy" from the taxpayer to students because the government was borrowing the funds at the higher rate.
Another option proposed by Chapman was to apply a one-off 25% surcharge on each graduate's loan and then continue the existing system of indexation by the consumer price index.
Likewise, Ian Yates of the Council of the Ageing, said the indexation changes (which link pensions to the consumer price index instead of average weekly wages) would mean real cuts after three years.
In negotiations, the government offered to abandon its proposal to increase the indexation of higher education loan program debts from consumer price index to the 10-year bond rate.
However, the chancellor also announced he would increase the child element of the tax credit by £150 above inflation (as measured by the consumer price index) from next April, and in April 2012 by £60 above indexation.
Consumer Price Index for September.
Consumer Price Index means the national "Consumer Price Index - All Urban Consumers" published by the Department of Labor.
See also consumer price index; wholesale price index.
See also consumer price index.
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