Local government pensions will increase by 1.7% in 2025
Printer-friendly versionEach 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. From 7 April 2025, local government pensions will increase by 1.7%. This increase is in line with September 2024’s adjustment in the Consumer Price Index (CPI).
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 6th; the second is the increased rate that applies from the 7th to the 30th. The full 1.7% 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.
The state pension will rise by 4.1% from April 2025
The Government confirmed in last October’s Autumn Budget that the State Pension will rise from April 2025 by 4.1%.
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 – the September 2024 CPI inflation measure, average wage growth between May and July 2024 (including bonuses), or 2.5%.
As September's CPI measure was 1.7%, this means state pensions will go up by average earnings growth instead, which was a higher 4.1%.