What is Annual Pension Increase?

Public sector pensions are increased in line with the Consumer Price Index (CPI) every April, under the provisions of the Pensions (Increase) Act 1971 and according to the Social Security Pensions Act 1975. Increases depend on the CPI rate in the 12 months up to the previous September.

How much will pensions increase from April 2026?

The amount of any increase is announced by the Secretary of State for Work and Pensions in the draft Pensions Increase (Review) Order which is approved by the UK Parliament in March. Increases then take place from Monday 6 April 2026.

The increase to your pension will be 3.8%, which will be applied to your pension from 6 April 2026.

Who receives the full increase?

Not everyone is eligible for the full increase from this date, this could be because: 

  • Depending on your pension payment date, you may only receive a part increase in your April payment. The full increase in your monthly pension will be applied from your May pension payment date. 
  • If you have not been in receipt of your pension for a full year, only a proportion of the annual increase is payable. 
  • Pensions increase will only be paid to members who have reached age 55, or if under 55, retired on the grounds of ill health, are a widow/widower or in receipt of a dependants allowance.  
  • Police and Fire members retiring on Ill Health from active service on either lower or upper tier will receive Pensions Increase before age 55. However, if you retire from deferred status on Ill Health on lower tier, then Pension Increase is applied after age 55.
  • If you have a Guaranteed Minimum Pension (GMP) [also known as Contracted Out Pension Equivalent (COPE)] component within your pension you may not receive the full increase.  

Our online portals 

You can view your pension information (including your P60 and monthly payslips) and update your personal details if you have a change of circumstances on our online portal. 

Re-employment 

Please contact us if you are considering re-employment as this may affect your pension entitlement. 

Dependants Pensions 

If you are in receipt of a widow or widower’s pension from us please contact us if you intend to re-marry or co-habit as this may affect your pension entitlement. If you are in receipt of dependants pension and your circumstances change you should notify us as soon as possible. This includes ceasing full time education or training, or any other change in your personal circumstances. Failure to inform us could lead to an overpayment and this will need to be recovered. 

Tax

If you have a tax query please contact HMRC on 0300 200 3300 or visit www.gov.uk/income-tax