Pensions are increased annually from April each year, in line with the cost of living. Pensions increase is determined by the HM Treasury and approved by Parliament then published in a government order. It is usually based on the annual increase in the Consumer Price Index (CPI) to the previous September.
The annual increase in CPI to September 2024 was 1.7%.
HM Treasury have now confirmed the annual increase in CPI will be 1.7% in April 2025. This means that pensions in payment will increase by 1.7% in April 2025.
The increase occurs on the first Monday after the start of the tax year on 6 April. This means that your April pension will be paid partly at the old rate and partly at the increased rate.
