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7 April 2025

Civil Service Pension increase from today

Civil Service pensions, and other public service pensions, rise by 1.7% from today (7th April), in line with the September 2024 CPI inflation rate. Pensions that have only been in payment for less than a year will be increased pro-rata from the date they commenced.

Many CSPA members will be understandably disappointed by the news, as the 1.7% figure is below the current rate of inflation of 2.8%, and the increase will be wiped out by the 6.4% increase in the Energy Price cap; the 5% increase in most Council tax bills; and the £10 a month increase in Water bills, all from 1 April. In addition, the continued freeze on income tax thresholds at £12,570 means that more of the pension increase will be taken in tax.

State Pensions rise by 4.1% from 6 April

State Pensions rise by 4.1% from 6 April in line with the Triple-Lock linked to the higher of: average earnings growth; inflation; or 2.5% The basic rate of State Pension (pre- April 2016) will rise by £6.94 a week to £176.45 per week (£9,175 per year); and the new rate of State Pension (from April 2016) rises by £9 per week to £230.25 per week (£11,973 per year).

The reason for the £54 a week difference between the old basic and new State Pension is explained in a podcast conversation between CSPA Pensions Officer Chris Haswell, and pensions expert Lord Bryn Davies, listen here.

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