Every year we review Civil Service pensions in payment to determine if they should be increased in line with prices. This review is called Pensions Increase (PI). PI takes effect from the first Monday after 6 April each year.
We use the Consumer Prices Index (CPI) to September of the previous year to determine PI. If CPI shows an increase in prices, PI is applied to pensions in payment in line with CPI. If prices have fallen, or remained at the same level, no PI is applied.
In September 2024, CPI was 1.7%. As a result, Civil Service pensions in payment will increase by 1.7% from Monday, 07 April 2025.
There could be several reasons why you may not have received the full 1.7% increase:
Your tax code may have changed. Check your tax code on your payslip. If you think it's incorrect, contact HM Revenue & Customson 0300 200 3300.
Pay dates. Your pension is paid in arrears. Depending on when your pay date falls in the month, you may not see the full increase until next month.
Eligibility. Not all members are eligible for the full 1.7% increase. Reasons why you have not received the full increase are shown below.
If you reached state pension age before 6 April 2016 and you were working in the Civil Service prior to 6 April 1997, part of your Pensions Increase is paid within your state pension.
If you retired part way through the last year you may only be eligible for a partial increase based on your calculation date.
This may be due to a change in your tax code. You can check your tax code by doing any of the following.
If your tax code has changed, it may mean more tax is being deducted from your payments. To resolve this, contact HMRC directly on 0300 200 3300.
Pensions Increase (PI) is the annual increase which may be applied to your Civil Service pension to help your pension keep pace with the cost of living. PI is applied in April and is based on the rise in the Consumer Price Index (CPI) over the previous 12 months ending September. PI is applied at the same percentage as the annual increase to the Additional State Pension.
Pensions Increase is usually paid to:
Anyone aged over 55.
Anyone under 55 who has qualified for:
An ill-health retirement pension.
A widow’s pension.
A widower’s pension.
A civil partner’s pension.
A partner’s pension.
A child’s pension.
Note: You may qualify for Pensions Increase on part of your pension before age 55 if you have dependent children under age 23.
Pensions Increase is applied from the first Monday after 6 April. Pensions Increase will be applied this year from Monday, 7 April 2025.
This year's increase is 1.7%.
Pension payments are made in arrears. Therefore, if you receive your pension at the end of the month (for example, 30 April) your payment will only reflect the new increased rate for part of the month.
Your P60 shows the total payments you’ve received during the tax year. This may differ from your annual pension figure because it includes any changes to the annual rate increases during the year.
In previous years, P60s were sent at the same time as payslips. Now, these documents are sent as soon as they are produced, so you may receive them separately. You should receive both by the end of May. Both documents are also available on the Pension Portal.
No, members cannot return Pensions Increases. These increases are statutory entitlements and will be considered when calculating benefits.
Before retiring, you will have received paperwork detailing your pension benefits, including the amount payable to your spouse in the event of your death. You can read more about benefits for your loved ones.
We are unable to change your tax code unless advised by HMRC. If you have any queries about your tax code or tax liability, contact HMRC on 0300 200 3300 or overseas +44 135 535 9022.
