In October 2024 we reported that Public Service pensions were to be increased by 1.7% in line with the annual increase in the Consumer Price Index (CPI).
Following this announcement, the government always issues a formal “Public Service Pension Scheme indexation and revaluation” statement. This year’s announcement was made 11th February.
The statement confirms two figures: the Consumer Price Index (CPI) which is used to increase all Armed Forces pensions in payment and increases to deferred pensions (AFPS75/05/15); and the Average Weekly Earnings (AWE) figure which is applied to AFPS15 only to increase (revalue) previous years of accruals, whilst still serving.
Consumer Price Index (CPI) – Like other Public Service pensions, Armed Forces pensions increase each year in line with the CPI, which will ensure that the pensions take account of increases in the cost of living and that their purchasing power is maintained. Public Service pensions will be increased from 7th April 2025 (the first Monday of the new tax year) by 1.7%, in line with the annual increase in the CPI 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. For veterans the CPI increases come into payment at the ages shown in the table below, unless the veteran was medically discharged (in which case the increases are immediate) and are backdated to when an individual left the Armed Forces:
| AFPS 75 | AFPS 05 | AFPS 15 |
|---|---|---|
| Age 55 for pensions in payment or 60/65 if deferred | Age 55 for immediate pension or age 65 if pension is deferred | Age 60 for immediate pension or State Pension Age (67/68) if deferred. |
Average Weekly Earnings (AWE) – Separately and in addition, career average public service pension schemes in accrual, which includes AFPS15, are revalued annually. AWE is the lead monthly measure of average weekly earnings per employee and is calculated using information based on the Monthly Wages and Salaries Survey, which samples around 9,000 employers in Great Britain. It provides estimates of monthly and annual change for the main industrial sectors and is used to increase (revalue) previous years of AFPS15 accruals, whilst still serving. The AWE increase for AFPS15 from April 2025 has been confirmed as 4.5%.
Worth mentioning here that the Armed Forces and Firefighters receive a higher uprating on pensions being earned than the other Public Sector Schemes.
| Scheme | Police | Firefighters | Civil Service | NHS | Teachers | Local Government | Armed Forces | Judicial |
| Revaluation for active member | 2.95% | 4.5% | 1.7% | 3.2% | 3.3% | 1.7% | 4.5% | 1.7% |
The MOD online calculator is updated each year to include the latest AWE adjustments for those in service
Source © UK Parliament 2025 Figures correct as at 02/25
