The Chief Secretary to the Treasury, Darren Jones, confirmed on the 11th February that the increase to be applied to Civil Service pensions from 7th April 2025 is to be 1.7%. The Treasury statement reads;
“Legislation governing public service pensions in payment requires them to be increased annually by the same percentage as additional pensions (state earnings related pension and state second pension). Public service pensions will therefore be increased from 7 April 2025 by 1.7%, in line with the annual increase in the consumer prices index up to September 2024, except for those public service pensions which have been in payment for less than a year, which will receive a pro rata increase. This will ensure that public service pensions take account of increases in the cost of living and their purchasing power is maintained.”
CSPA members are understandably disappointed by the news, as the 1.7% figure is well below the current rate of inflation of around 2.5% and, according to the ONS, the Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 3.5% in the 12 months to December 2024, and the Retail Price Index (RPI) was 3.5% in December 2024.
State Pensions, on the other hand, are set to be increased by 4.1% on the 6th April 2025 under the Triple-Lock mechanism, providing a good example of why maintaining the links with the average increase in wages.
