In its response to the DMO’s call for evidence to inform the Government’s decision on whether to issue CPI-linked gilts, the NAPF reiterates its call for increased issuance of long-dated index-linked, gilts.  While pension schemes would welcome a choice of index-linked gilts that more exactly meets their pension liabilities, the Government needs to ensure that the issuance of a new type of index-linked gilt does not damage the wider index-linked gilts market, for example because of fragmentation.  The NAPF recommends that the DMO issue more index-linked gilts than they would otherwise have done, so as to allow CPI-linked issuance to be built up without a damaging fall in RPI-linked issuance.

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