Public service pensions are a cornerstone of the remuneration package for hardworking people across our public services. Ensuring that they maintain their value over time is essential to delivering dignity in retirement for current and former public service workers.

Legislation governing public service pensions in payment requires them to be increased annually by the same percentage as additional pensions (State Earnings Related Pension and State Second Pension). Public service pensions will therefore be increased from 06 April 2026 by 3.8 per cent, in line with the annual increase in the Consumer Prices Index up to September 2025, except for those public service pensions which have been in payment for less than a year, which will receive a pro-rata increase. This will ensure that public service pensions take account of increases in the cost of living and their purchasing power is maintained.

Separately, in the career average revalued earnings public service pension schemes introduced in 2014 and 2015, pensions in accrual are revalued annually in relation to either prices or earnings depending on the terms specified in their scheme regulations. The Public Service Pensions Act 2013 requires HMT to specify a measure of prices and of earnings to be used for revaluation by these schemes.

The prices measure is the Consumer Prices Index up to September 2025. Public service schemes which rely on a measure of prices, therefore, will use the figure of 3.8 per cent for the prices element of revaluation.

The earnings measure is the Whole Economy year on year change in Average Weekly Earnings (non-seasonally adjusted and including bonuses and arrears) up to September 2025. Public service schemes which rely on a measure of earnings, therefore, will use the figure of 4.8 per cent for the earnings element of revaluation.

The effective date of revaluation listed in the order is 1 April 2026, but some schemes have chosen to move their effective revaluation date to 6 April 2026 in order to manage interactions with the annual tax allowance.

Revaluation is one part of the amount of pension that members earn in a year and needs to be considered in conjunction with the amount of in-year accrual. Typically, schemes with lower revaluation will have faster accrual and therefore members will earn more pension per year. The following list shows how the main public service schemes will be affected by revaluation:

Scheme

Police

Firefighters

Civil Service

NHS

Teachers

LGPS

Armed Forces

Judicial

Revaluation for active member

5.05%

4.8%

3.8%

5.3%

5.4%

3.8%

4.8%

3.8%

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