Civil Service Pensions will rise by 3.8% from 6 April next year (2026), following an announcement on October 22nd by ONS of the September increase in the Consumers Prices Index (CPI). Although this is better than last year`s disappointing 1.7% increase, CPI had been expected to rise to 4% in September before dropping to around 2% by next Spring.
Civil Service pension increases are determined each year by the preceding September CPI figure (announced in mid-October), underpinned by legislation in the Social Security Act 1975 that links the increase to Social Security benefit increases which are linked to the CPI measurement of inflation. Prior to 2011 the link was with the higher Retail Prices Index, which is no longer recognised as “an appropriate measure of inflation”.
CSPA Deputy General Secretary David Luxton commented: “The pension increase of 3.8% increase will bring some relief to many members who are still struggling with higher Council Tax; energy price increases; and water bill increases since last April`s disappointing 1.7% increase in pensions.”
The 3.8% increase will only apply to Civil Service pensions that have been in payment for at least 12 months, otherwise pro-rata increases will apply.
The State Pension, currently payable from age 66, is expected to rise by 4.8% from 6 April next year under the `Triple-Lock` that gives the higher of: CPI inflation; Average Earnings growth; or 2.5%. Average earnings rose by 4.8% (adjusted, including bonuses) in the past year (averaged out over May-July). The State Pension increase will be formally confirmed by the Chancellor, Rachel Reeves at her Autumn Budget Statement on 26 November.
The State Pension age will increase to 67 on a phased basis over a two-year period from April next year, along with the Civil Service pension age, which now follows State Pension age.
