# The Pensions Increase (Review) Order 2025, Note: Explanatory note


(This note is not part of the Order)
Under section 59 of the Social Security and Pensions Act 1975 (c. 60) (increase of official pensions) where the Secretary of State for Work and Pensions, under section 151(1) of the Social Security Administration Act 1992 (c. 5), directs that the sums in section 150(1)(c) of the 1992 Act are to be increased by a specified percentage, the Treasury must make an order to increase the rates in public service pensions. The Pensions (Increase) Act 1971 (c. 56) defines certain terms, sets out when a pension “begins” and how the increase applies to lump sums.
The increase to be applied is the same as the percentage by which the Secretary of State for Work and Pensions has, by direction under the Social Security Administration Act 1992, increased the additional pension entitlements accruing to employees in respect of earnings for service after 5th April 1978.
For pensions which began before 8th April 2024 the increase is 1.7 per cent. For pensions which began on or after the 8th April 2024 the increases (following the calculation set out in article 3) are as follows—
Pensions beginning
Pensions increase
8th April 2024 to 22nd April 2024
1.7%
23rd April 2024 to 22nd May 2024
1.56%
23rd May 2024 to 22nd June 2024
1.42%
23rd June 2024 to 22nd July 2024
1.28%
23rd July 2024 to 22nd August 2024
1.13%
23rd August 2024 to 22nd September 2024
0.99%
23rd September 2024 to 22nd October 2024
0.85%
23rd October 2024 to 22nd November 2024
0.71%
23rd November 2024 to 22nd December 2024
0.57%
23rd December 2024 to 22nd January 2025
0.43%
23rd January 2025 to 22nd February 2025
0.28%
23rd February 2025 to 22nd March 2025
0.14%
Article 3(3) of the Order provides for increases on certain deferred lump sums which become payable on or after 8th April 2024 and before 7th April 2025.
Article 4 of the Order sets out reductions to pension increases where a person is entitled to a guaranteed minimum pension deriving from an employment giving rise to the official pension. Where that is the case, the amount by reference to which any increase in the person’s pension is to be calculated is to be reduced by an amount equal to the rate of the guaranteed minimum pension entitlement, unless the Treasury otherwise direct.
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.

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Source: https://www.legislation.gov.uk/uksi/2025/343/note (the official version)
Page: https://openlegislation.uk/pensions-increase-review-order-2025/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.