Pension increases

To make sure you aren’t adversely affected by the cost of living, your public sector pension is aligned with the Consumer Price Index (CPI).

Consumer Price Index (CPI)

The Consumer Price Index CPI) is the official measure of inflation based on hundreds of different goods and services, the prices of which are tracked throughout the year.

How is the pension increase applied to your pension?

This depends on whether you are a retired member (already receiving your monthly pension payments) or a deferred member (no longer paying into your scheme, but not yet retired).

It also depends on whether this situation has changed within the last 12 months or if you receive GMP.

Learn more about GMP
  • If you are retired and aged 55 or over (or retired on ill health grounds), you will receive the full pension increase as long as you have been retired for at least 12 months. If you retired mid-year, you will receive the increase on a pro-rata basis (see table below).
  • If you’re no longer paying into your pension (deferred) , you will receive the full increase regardless of your age. But if you left the scheme mid-year, it will be on a pro-rata basis.

Pension increases for April 2026

The latest pension increase has been confirmed as 3.8% based on the Consumer Price Index (CPI) for September 2025. The pension increase applies from 6 April 2026.

How the pension increase is applied if you stopped paying from March 2025

If you retired or stopped paying into your pension from March 2025, your pension increase is included on a pro rata basis throughout the year (click here to find out why). The table below shows how the payments are made each month.

Date retiredTotal % increase
22 Feb 26 to 21 Mar 260.32%
22 Jan 26 to 21 Feb 260.63%
22 Dec 25 to 21 Jan 260.95%
22 Nov 25 to 21 Dec 251.27%
22 Oct 25 to 21 Nov 251.58%
22 Sep 25 to 21 Oct 251.9%
22 Aug 25 to 21 Sep 252.22%
22 Jul 25 to 21 Aug 252.53%
22 Jun 25 to 21 Jul 252.85%
22 May 25 to 21 Jun 253.17%
22 Apr 25 to 21 May 253.48%
23 Mar 25 to 21 Apr 253.80%

Historical pension increases

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