The Public Service Pensions Revaluation Order 2026

Published: Wed 11th Mar 26

This statutory instrument, made by the Treasury, sets the specific percentage increases to be used for revaluing accrued pension rights within certain public service pension schemes for the period between 1st April 2025 and 31st March 2026, establishing an increase in prices of 3.8 per cent and an increase in earnings of 4.8 per cent, and specifies the dates the Order comes into force across different UK jurisdictions and schemes.

Arguments For

Establishes legal certainty and transparency for public sector pension scheme members by officially setting the annual revaluation factors.
Ensures that accrued pension rights within specified schemes accurately reflect economic changes (inflation and wage growth) as mandated by the Public Service Pensions Act 2013.
Provides scheme administrators with the necessary legal basis to apply the correct statutory adjustments for the revaluation period of April 2025 to March 2026.

Arguments Against

The timing and mechanism of revaluation can impact the long-term liabilities calculus for public sector financing, requiring ongoing scrutiny of the chosen indices (CPI and Average Weekly Earnings).
Different commencement dates for certain Local Government and NHS schemes (April 6th vs April 1st) introduce minor administrative complexities for those specific scheme administrators.
While no significant impact is foreseen, any deviation from expected inflation/earnings figures can lead to retrospective dissatisfaction among scheme members or taxpayers regarding benefit adequacy or scheme funding levels.

STATUTORY INSTRUMENTS

2026 No. 254

PUBLIC SERVICE PENSIONS

The Public Service Pensions Revaluation Order 2026

Made - - - - 9th March 2026 Laid before the House of Commons - - - - 11th March 2026 Coming into force in accordance with article 1(2) and (3)

This heading identifies the instrument as a Statutory Instrument, numbered 2026 No. 254, concerning Public Service Pensions, titled "The Public Service Pensions Revaluation Order 2026." It shows that the Treasury made the Order on March 9th, 2026, and it was formally presented to the House of Commons on March 11th, 2026.

The Treasury make the following Order in exercise of the powers conferred by section 9(2) and (3) of the Public Service Pensions Act 2013( 1 ).

The Treasury issues this Order by using the legal authority granted under subsections 9(2) and 9(3) of the Public Service Pensions Act 2013.

Citation, commencement and extent

-(1) This Order may be cited as the Public Service Pensions Revaluation Order 2026.

(2) Subject to paragraph (3), this Order comes into force on 1st April 2026.
(3) Article 2 comes into force on 6th April 2026 in respect of schemes established by-

(a) the Local Government Pension Scheme Regulations 2013( 2 );
(b) the Local Government Pension Scheme (Scotland) Regulations 2018( 3 );
(c) the National Health Service Pension Scheme Regulations 2015( 4 );
(d) the National Health Service Pension Scheme (Scotland) Regulations 2015( 5 ).

(4) This Order extends to England and Wales, Scotland and Northern Ireland.

Article 1 sets out the formal name, when the rules take effect, and where they apply.

Generally, the Order starts on April 1st, 2026.

However, Article 2, which details the specific revaluation rates, starts later on April 6th, 2026, for members of the main Local Government schemes (England/Wales and Scotland) and the NHS pension schemes (England/Wales and Scotland).

The entire Order legally applies across England, Wales, Scotland, and Northern Ireland.

Revaluation by reference to change in prices or earnings

For the purposes of section 9(2) of the Public Service Pensions Act 2013 (revaluation), in relation to the period beginning with 1st April 2025 and ending with 31st March 2026-
(a) the change in prices is an increase of 3.8 per cent;
(b) the change in earnings is an increase of 4.8 per cent.

Article 2 defines the adjustment factors for pension revaluation, as required by Section 9(2) of the 2013 Act, specifically covering the 12-month period from April 1st, 2025, through March 31st, 2026.

The measure for the change in prices (inflation) is set at an increase of 3.8 percent, and the measure for the change in earnings (wages) is set at an increase of 4.8 percent.

( 1 ) 2013 c. 25.

( 2 ) S.I. 2013/2356.

( 3 ) S.S.I. 2018/141.

( 4 ) S.I. 2015/94.

( 5 ) S.S.I. 2015/94.

These lines provide the statutory references (citations) for the primary Act and the specific previous Regulations mentioned within the Order.

9th March 2026 Gen Kitchen Taiwo Owatemi Two of the Lords Commissioners of His Majesty's Treasury

This section lists the date the Order was signed and identifies the two signatories, Gen Kitchen and Taiwo Owatemi, acting as Lords Commissioners for His Majesty's Treasury.

EXPLANATORY NOTE

(This note is not part of the Order)

Section 9 of the Public Service Pensions Act 2013 (c. 25) (revaluation) applies to pension schemes which, under that Act, require a revaluation of pensionable earnings, or a proportion of such earnings, accrued as a pension, by reference to a change in prices or earnings (or both) in a given period.

In relation to the period from 1st April 2025 to 31st March 2026 inclusive, article 2 of this Order specifies an increase in prices of 3.8 per cent, based on a measure of the year on year change in the Consumer Prices Index to September 2025; and an increase in earnings of 4.8 per cent, based on a measure of the year on year change in average weekly earnings to September 2025.

This Order comes into force on 1st April 2026 but, for the schemes specified in article 1(3), this Order comes into force on 6th April 2026.

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.

The Explanatory Note clarifies that the Order implements Section 9 of the 2013 Act, which requires pension revaluation based on economic changes.

It explicitly states the 3.8% price increase is based on the Consumer Prices Index (CPI) change up to September 2025, and the 4.8% earnings increase is based on average weekly earnings up to September 2025.

It reiterates the two different commencement dates for different schemes.

Finally, the Treasury notes that a full impact assessment was deemed unnecessary as no significant economic impact on the private, voluntary, or public sectors is anticipated.

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