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Public Service Pension Scheme Indexation and Revaluation 2025

11 February 2025

Proposing MP
Bristol North West
Type
Written Ministerial Statement
Department
Treasury

At a Glance

Issue Summary

The statement discusses the annual indexation and revaluation of public service pensions for payment and accrual in 2025.

Action Requested

Public service pensions will be increased by 1.7% from April 7, 2025, to reflect cost-of-living increases. Additionally, pension schemes relying on earnings will use a figure of 4.5% for the earnings element of revaluation effective from April 6, 2025.

Key Facts

  • Public service pensions will increase by 1.7% from 07 April 2025.
  • The Consumer Prices Index up to September 2024 is used as the prices measure at 1.7%.
  • Earnings measure for public service schemes is Whole Economy year on year change in Average Weekly Earnings, up to September 2024, set at 4.5%.
  • Effective revaluation date is 1 April 2025 but some schemes moved it to 6 April 2025.
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Summary accuracy