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.

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 the first Monday after 5 April. We’ll tell you in April if your pension will increase for the year ahead. We’ll also send you a P60 which shows your total pension paid and tax deducted for the year.

If you haven’t been receiving your pension for a full year, you’ll only receive a proportion of the annual increase.

If you’re under 55, the increase won’t be applied until your 55th birthday, unless:

  • you retired on ill-health
  • you receive an injury benefit
  • you receive a widow or widower’s pension, civil partner, partner or child pension

Turning 55

If you’re due to turn 55, we’ll calculate your new pension rate before your birthday and let you know. If your 55th birthday is part-way through a payment period you’ll get a part-month increase based on your pension before 55 and after 55. Your next payment will include a full month-increase.

We don’t provide estimates of age 55 increases.

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