The Civil Service pension increase measure is due to be paid from Monday 10 April.
We are awaiting confirmation but this should be an increase of 10.1% based on the Consumer Prices Index (CPI) annual increase in September of last year.
The formal Government announcement of the annual increase for all public sector pensions, including the Civil Service is made in Parliament in late January or in February, followed by the Pension Increase (Review) Order laid before Parliament in early March.
There is a statutory requirement under Sections 59 and 59A of the Social Security Act 1975 for Civil Service pensions (and all other public service pensions) to be increased by the same percentage as the additional State Pension (of State Earnings Related Pension and Second State Pension), in line with the increase “in the general level of prices in the review period” in practice the year to the preceding September. This measured by the annual increase in the Consumer Prices Index in September of the preceding year.
The pension increase, when confirmed, is linked to the Tax Year and payable from the first Monday after 6 April, so this year will be from Easter Monday 10 April.
CSPA Deputy General Secretary David Luxton commented: “We had been expecting the formal Government confirmation of the 10.1% increase in Civil Service pensions during January, especially as it must be implemented for pensions in payment from 10 April.
“In uncertain times it is reassuring that there is a robust Statutory protection of the pension increase mechanism, which is linked directly to the increase in the additional State Pension and based on the annual level of price increases to the preceding September as measured by the Consumer Prices Index. It is vitally important that the value of pensions in payment are protected from rising inflation”.
It was confirmed by the Chancellor of the Exchequer on 17 November 2022 that the basic and new rates of State Pension will increase by 10.1% from April under the `Triple-Lock` mechanism of the higher of: earnings growth; inflation; or 2.5%.
As soon as we have the confirmation announcement of the Civil Service pension increase, we will post an update.
Further information on the basis of public service pension increases can be found from the Public Service Pensions: Increases briefing published by the House of Commons Library.