18 October 2023

Civil Service Pensions set to rise by 6.7% from April as CPI inflation confirmed

Civil Service pensions are set to increase by 6.7% from 8 April 2024 following this morning`s announcement by the Office for National Statistics (ONS) that the Consumer Prices Index for September remains at 6.7%. The annual pension increase is underpinned by a statutory link to the inflation rate in the preceding September.

The ONS announcement also means that State Pensions are due to rise by the higher earnings growth figure of 8.5% from April, in line with the triple-lock which links the State Pension increase to the higher of : CPI inflation; earnings growth; or 2.5%. ONS had confirmed last month that average earnings (including bonuses) had risen by 8.5% over 12 months averaged over May to July., which is the usual period used under the triple lock.

The Government has publicly committed to retaining the triple-lock for the remainder of this Parliament but has not yet confirmed the 8.5% increase. Under legislation the Secretary of State for Works and Pensions is permitted to estimate the “general level of earnings in such a manner as he thinks fit“. The Chancellor is expected to confirm the State Pension increase in his budget on 22 November.

Sally at 2023 AGM

CSPA General Secretary, Sally Tsoukaris, commented today ” Civil Service pensioners are feeling the cost of living squeeze, so the 6.7% increase from April will help, especially as average Civil Service pensions are so low relative to average Civil Service earnings. For women the average pension is now £7,502 a year, and for men it is £13,513. The overall average Civil Service pension in payment is £9,874 a year, well below the basic tax threshold. That is why so many retired Civil Servants rely on the State Pension to get by, and need the security of the triple-lock.”

The Civil Service Pensions increase is usually confirmed by a formal Government announcement in late January.


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