The Consumer Price Index (CPI) increase was announced* in October 2024 as 1.7%. This figure is used to increase all Armed Forces pensions in payment.
The adjustment to your pension is typically determined by the Consumer Price Index (CPI) from September to September and takes effect the on the first Monday after the beginning of the new tax year – so, for 2025 it comes into effect on 7th April.
Note that those receiving pensions for less than a year will receive a proportion of the full increase, depending on how many months your pension has been in payment during that year. That means:
- Pensions that began before April 8, 2024 will be uprated by 1.7%.
- Pensions that began on or after April 8, 2024, and before April 7, 2025, will receive a pro-rata increase
The table below shows the pension increases for the past ten years.
*The CPI rate is always announced in October and the Pension increase is normally formalised in law in February the following year.
Read more about this subject here Armed Forces Pensions – Indexation & Revaluation 2025
