Public Sector pensions are set to increase by 3.1% from 11 April 2022. This increase is in line with the rise in the Consumer Price Index (CPI) for the period between September 2020 and September 2021.
Who does this apply to
The Pension Increase is paid to pensioners who are over 55, or who are under 55 and qualify for any of the following:
- An NHS / Teachers ill-health retirement pension
- A widow’s or widower’s pension
- A partner’s or civil partner’s pension
- A child’s pension
If you retired after 26 April 2021, you will only receive a proportion of this year’s annual increase. You will receive your first full percentage increase next year.
Frequently Asked Questions
Who decides on the pensions increase each year and when is it done?
The Secretary of State for Work and Pensions makes the announcement in a draft Pensions Increase (Review) Order. This is then approved by the UK Parliament, usually in March each year. The new rate of increase always takes effect from the first Monday after 5 April.
Why does my payslip not reflect the full percentage increase?
The pension increase is effective from 11 April 2022. This means, depending on your payment date, you may receive a payment at both the old rate and the new rate. Your payslip the following month will reflect the full increased rate.
If this year’s Pensions Increase is 3.1%, why has my gross monthly amount not increased by that rate?
The full Pensions Increase of 3.1% is only applied to Members who were in receipt of their pension on or before 26 April 2021. If you retired after 26 April 2021, you will receive a proportion of this year’s increase.
Why has my tax code changed?
We are instructed by HMRC to apply the relevant tax code. If your tax code has changed and you require further information or have any questions, please contact HMRC on 0300 200 3300. When calling, please have your National Insurance number to hand.
Contact Us
If you have any questions regarding the annual pension increase and you are a member of the NHS or Teachers scheme, please contact us at: pensionspayroll@gov.scot. If you are a member of the Police or Firefighters' scheme, please contact us at: police&firepayroll@gov.scot.