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Pension increases

Below are details of pension increases for previous years:

Previous pension increases
Year Percentage increase
2024 6.7 per cent increase
2023 10.10 per cent increase
2022 3.1 per cent increase
2021 0.5 per cent increase
2020 1.7 per cent increase
2019 2.4 per cent increase
2018 3 per cent increase
2017 1 per cent increase
2016 0 per cent increase
2015 1.2 per cent increase
2014 2.7 per cent increase
2013 2.2 per cent increase
2012 5.2 per cent increase
2011 3.1 per cent increase
2010 0 per cent increase
2009 5 per cent increase
2008 3.9 per cent increase
2007 3.6 per cent increase
2006 2.7 per cent increase
2005 3.1 per cent increase
2004 2.8 per cent increase
2003 1.7 per cent increase
2002 1.7 per cent increase
2001 3.3 per cent increase

How the increase is worked out

Pensions historically increased with the Retail Price Index (RPI).

However, from April 2011 they've increased in line with the Consumer Price Index (CPI). If the CPI is a negative amount, the pension will not increase.

Pension increase limitations

In cases where there is a pension increase, it won't be payable to you if you are under age 55, unless you retired by reason of permanent ill health or are in receipt of a dependant's pension.

Where your pension is in respect of a pension scheme membership occurring after 5 April 1978 and before 6 April 1997, and you became entitled to receive the State Pension on or before 5 April 2016, the increase does not normally apply to any guaranteed minimum pension (GMP) element contained within your local government pension.

Please note: GMP is also known as a contracted-out deduction or COD on your State Pension notification. The increase in your GMP is paid with your State Pension as part of the additional pension.

However, if all or part of your GMP relates to a period after 5 April 1988, the increase of up to three per cent on that part is paid with your local government pension, and the remainder (if applicable) is paid with your State Pension.