What is a pension increase?
One of the benefits of your Local Government Pension Scheme (LGPS) pension is that it will be increased in line with the cost of living (Consumer Price Index).
The Consumer Price Index (CPI) for the year up to September 2023 was 6.7%, therefore an increase of 6.7% will apply to pensions in payment from 8 April 2024.
Your April pension payment will include part of the month paid at the old rate and part of the month paid at the new rate. Your May pension payment will include the full increase.
The first increase to your pension after retirement will normally only be a proportion of the full increase, depending on how many months your pension has been in payment during the year.
You will usually receive this increase if:
- you are receiving a pension and you are over 55
- you retired because of ill-health, or
- you receive a spouse's, partner's or child's pension.
If you do not fall into one of these groups, your pension will not increase until your 55th birthday. At this point it will be paid at the rate you would have received if Pensions Increase had been in payment from the date of leaving or the date your final pay was calculated, if earlier.
In certain circumstances your pension will not increase by the full 6.7%:
- If you reached your State Pension Age before 6 April 2016 and your pension includes any Guaranteed Minimum Pension (GMP) that was accrued before 6 April 1988, this element of your pension will not increase. The increase on this part of your pension will be paid with your state pension. If your pension includes GMP accrued after 5 April 1988, this element of your pension will be increased by 3% with the remaining 0.1% being paid with your state pension.
- Pensions increase applies from the day after your scheme membership ended, except for a dependant's pension. The pensions increase on a dependant's pension applies from the day after the last day of scheme membership of your late spouse/partner or parent/legal guardian. Therefore, if the scheme membership ended on or after 26 April 2023 a smaller, part-year increase will apply.
When is pension increase confirmed?
The Government issues a Pensions Increase Review Order that notifies us of the annual increase to pensions, usually around March each year.
We will update this page on an annual basis, once an updated Pensions Increase Review Order has been published. We will also provide written notice of any changes to Pensions Increase within your Pensioner Newsletter (PDF).