OpenLegislation

The Guaranteed Minimum Pensions Increase Order 2026

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2026, ISBN 9780348278354

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Draft Order laid before Parliament under section 109(2) of the Pension Schemes Act 1993 for approval by resolution of each House of Parliament.

PENSIONS

Made ***

Coming into force 6th April 2026

The Secretary of State makes this Order in exercise of the power conferred by section 109(4) of the Pension Schemes Act 1993f1.

In accordance with section 109(1) of that Act, the Secretary of State has reviewed the general level of prices in Great Britain for the period of 12 months commencing on 1st October 2024 and it appears to the Secretary of State that the general level of prices was greater by 3.8 per cent. at the end of that period than it was at the beginning of that period.

In accordance with section 109(2) of that Actf2, a draft of this Order has been laid before and approved by a resolution of each House of Parliament.

Annotations to the whole text

Footnotes

f1

1993 c. 48.

f2

Section 109(2) was amended by section 55(a) of the Pensions Act 1995 (c. 26) and S.I. 2005/2050.

Contents

  1. 1Citation, commencement and extent
  2. 2Increase of guaranteed minimum pensions
  3. Signature
  4. Explanatory note

1Citation, commencement and extent

(1)

This Order may be cited as the Guaranteed Minimum Pensions Increase Order 2026 and comes into force on 6th April 2026.

(2)

This Order extends to England and Wales and Scotland.

2Increase of guaranteed minimum pensions

For the purposes of section 109(2) and (3) of the Pension Schemes Act 1993, the percentage by which there is to be an increase of the rate of that part of guaranteed minimum pensions which is attributable to earnings factors for the tax years in the relevant periodf1 is 3 per cent.

Signature

Signed by authority of the Secretary of State for Work and Pensions

[Name]

Parliamentary Under Secretary of State

Department for Work and Pensions

[Date]

Explanatory note

(This note is not part of the Order)

This Order makes provision for the annual increase of the part of guaranteed minimum pensions attributable to earnings factors for the tax years 1988–89 to 1996–97. Guaranteed minimum pensions are payable by defined benefit occupational pension schemes that were contracted out of the Additional State Pension between 6 April 1978 and 5 April 1997. This Order specifies the percentage for the annual increase as 3 per cent.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.