The Consumer Price Index (CPI) – the figure that is typically used to increase Armed Forces pensions in payment from April 2026 – has been announced as 3.8%.
This annual adjustment ensures that pensions maintain their spending power by keeping pace with the cost of living.
Here’s a quick summary:
- Increase Rate: 3.8%
- Applies To: All Armed Forces pensions in payment
- Pro-rata: If your pension has been in payment for less than a year, the increase will be proportionate
- Effective Date: Usually the first Monday on or after the new tax year. For 2026 it is expected to come into effect on 6th April
The table below shows the pension increases for the past ten years.
*The Consumer Price Index is the official measure of inflation in consumer prices in the UK. The CPI rate is always announced in October and the Pension Increase (PI) is normally formalised in law in January/February the following year, ready for payment in April
We’ll provide further information on Pension Increases in future comms. Watch this space!
