This Order may be cited as the State Pension Revaluation for Transitional Pensions Order 2025.
The State Pension Revaluation for Transitional Pensions Order 2025
Published: Thu 27th Nov 25
This Order, made by the Secretary of State for Work and Pensions, legally establishes a revaluing percentage of 39.0 per cent for increasing 'protected payments' within transitional state pensions, as required following a review concerning the increase in the general level of prices in Great Britain during the specified review period.
The order cites powers under the Social Security Administration Act 1992 and sets out specific commencement dates in December 2025 and April 2026, extending its provisions across England, Wales, and Scotland.
Arguments For
Ensures that the real value of 'protected payments' within transitional state pensions is maintained against inflationary erosion since the 2016 pension reforms.
Fulfills the statutory requirement under the Social Security Administration Act 1992 to review and specify the necessary revaluation percentage based on the increase in the general level of prices.
Provides clarity and legal certainty regarding the calculation of pension increases for individuals transitioning to the new State Pension system under the Pensions Act 2014.
Arguments Against
A 39.0 per cent increase in protected payments represents a significant financial commitment arising from historical pension accruals, potentially impacting public expenditure forecasts.
The Order's complexity, particularly the distinct commencement dates in Article 1(2), may cause administrative confusion for claimants reaching pensionable age immediately prior to April 2026.
Critics might argue that linking the revaluation solely to the general level of prices may not accurately reflect the specific economic circumstances or the appropriate uplift for individual pensioner incomes.
The Secretary of State has carried out a review in accordance with section 148AC(1) of the Social Security Administration Act 19921 and it appeared to the Secretary of State that the general level of prices in Great Britain has increased during the review period2.
Accordingly the Secretary of State makes the following Order in exercise of the powers conferred by sections 148AC(3) and 189(1) and (4) of the Social Security Administration Act 19923.
The Secretary of State conducted a mandatory review under Section 148AC(1) of the Social Security Administration Act 1992.
This review determined that the general level of prices in Great Britain rose over the relevant period.
Based on these findings, the Secretary of State officially creates this Order using the specific powers granted by sections 148AC(3) and 189(1) and (4) of the same Act.
Citation, commencement, extent and interpretation1.
(1)
(2)
This Order comes into force on—
(a)
22nd December 2025 for the purpose of making an award on a claim for a state pension under regulation 15(1) of the Social Security (Claims and Payments) Regulations 1987 (advance notice of retirement and claim for and award of pension)4 to a person who reaches pensionable age5 on or after 7th April 2026, and
(b)
6th April 2026 for all other purposes.
(3)
This Order extends to England and Wales and Scotland.
(4)
In this article “a state pension” means a state pension under Part 1 of the Pensions Act 2014.
Article 1 sets out the formal details for the legislation.
It names the Order as the State Pension Revaluation for Transitional Pensions Order 2025.
The commencement rules are split: the Order takes effect on December 22, 2025, specifically for processing claims for state pensions by people who reach pensionable age on or after April 7, 2026.
For all other administrative or legal purposes, the Order begins on April 6, 2026.
This legislation applies geographically across England, Wales, and Scotland.
Finally, 'a state pension' is defined specifically as a state pension established under Part 1 of the Pensions Act 2014.
Increase in the general level of prices2.
For the purposes of section 148AC(3) and (4) of the Social Security Administration Act 1992 (revaluation for transitional pensions under the Pensions Act 2014), the increase in the general level of prices during the review period is 39.0 per cent.
This core article determines the revaluation figure.
It sets the percentage increase in the general level of prices during the review period as 39.0 per cent.
This percentage directly serves the requirements of section 148AC(3) and (4) of the Social Security Administration Act 1992 concerning the revaluation of transitional pensions established under the Pensions Act 2014.
Signed by authority of the Secretary of State for Work and Pensions
Torsten Bell
Parliamentary Under Secretary of State
Department for Work and Pensions
This section records the formal execution of the Order.
It confirms that the document was signed on behalf of the Secretary of State for Work and Pensions.
The signatory is Torsten Bell, acting as the Parliamentary Under Secretary of State for the Department for Work and Pensions, with the date of signature being November 25, 2025.
Explanatory Note
(This note is not part of the Order)
This Order is made following a review under section 148AC(1) of the Social Security Administration Act 1992 (c. 5) (“the Administration Act”) (revaluation for transitional pensions under the Pensions Act 2014 (c. 19)).
The Pensions Act 2014 created a new state pension for persons reaching pensionable age on or after 6th April 2016 (see Part 1 of that Act). Pensionable age has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995 (c. 26). The part of a person’s new state pension based on their pre-April 2016 contribution record that exceeds the full rate of the new state pension as at 6th April 2016 is commonly referred to as a “protected payment”. Paragraph 6(5) of Schedule 1 to the Pensions Act 2014 provides for the revaluing of protected payments by increasing these payments by the “revaluing percentage” specified in the last order under section 148AC(3) of the Administration Act to come into force before the person reached pensionable age.
Under section 148AC(4) of the Administration Act the revaluing percentage is the percentage of the increase in the general level of prices since 6th April 2016 (the review period specified by section 148AC(2)).
Article 2 of this Order specifies the revaluing percentage as 39.0 per cent.
Article 1(2) ensures that the revaluation of protected payments will apply to persons reaching pensionable age on or after 7th April 2026, including those who make an advance claim for a state pension under regulation 15(1) of the Social Security (Claims and Payments) Regulations 1987 (S.I. 1987/1968).
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 this Order implements the review required by the Administration Act regarding transitional pensions under the Pensions Act 2014.
The 2014 Act introduced a new State Pension from April 6, 2016.
A 'protected payment' is the portion of a person's new pension based on their pre-April 2016 record that exceeds the standard full rate of the new pension at that date.
Legislation mandates these protected payments must be increased by a 'revaluing percentage'.
This revaluing percentage is defined as the inflation increase since April 6, 2016.
Consequently, Article 2 sets this percentage at 39.0 per cent.
Article 1(2) confirms that this revaluation applies to people reaching pensionable age after April 7, 2026, including those claiming early.
The note concludes that no significant impact assessment was deemed necessary for this measure.
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