Local government pensions will increase by 10.1% in 2023

Each April your local government pension is increased to ensure that it maintains its spending power in line with the rise in the cost of living. The Government has confirmed that local government pensions will rise by 10.1% from 10 April 2023.

This increase is calculated in line with September 2022’s CPI inflation figure. April’s pension payment will be a combination of two different annual rates. The first is the current rate that applies from the 1st of the month to the 9th; the second is the increased rate that applies from the 10th to the 30th. The full 10.1% pension increase will be applied in May’s pension payment.

Any pension which has been in payment for less than a year will be increased by a proportionate amount depending on the number of months it has been in payment.

Merseyside Pension Fund is bound by the provisions of annual Review Orders issued by HM Treasury and has no discretion in applying your pension increase.

 

The government confirmed in last November’s Autumn Statement that the State Pension will rise from April 2023 by 10.1%. This rise is in line with the government’s ‘triple lock’, which guarantees that the increase payable from April will be the highest of three measures - CPI inflation, average earnings or 2.5%.

 

This follows last year’s suspension of the triple lock, which limited the increase to the CPI inflation figure instead of the higher average earnings figure.