Pensions Increase

Pensions Increase is 1.7% from 7 April 2025

How is the increase calculated?

The Pensions Increase (Review) Order, which is issued each year by central government, tells all public sector pension schemes (of which the Local Government Pension Scheme is one) of the increase that should be applied to pension benefits. The annual increase reflects the rise in the cost of living and is in line with the Consumer Price Index (CPI) measure of price inflation recorded in the previous September.

Who is eligible for the increase?

• Anyone in receipt of a pension who is over 55 or left employment to retire on the grounds of ill health.
• A person who has received the payment of their preserved benefits on ill health grounds and who was incapable of carrying out any type of work.
• Anyone in receipt of a spouse’s or children’s pension.

When will we notify you about the increase?

Your payslip for April will include the increase in your pension (where applicable) from 7 April 2025. This payment will be 6 days at your old amount and 24 days at your new amount. Your payslip for May will show the increased pension for a full month.

Am I entitled to the full increase?

If your pension began on or before 22 April 2024 you are entitled to receive the full increase. If your pension began after this date, a smaller increase applies as shown in the table below: