The increase in the Consumer Price Index (CPI) for the year ending September 2025 was confirmed by HM Treasury as 3.8%.
Official confirmation from HM Treasury as to whether the 3.8% increase will apply to public service pension schemes (including the LGPS) is expected by March 2026, before the increase takes effect on 6 April 2026.
How does 3.8% CPI affect my pension?
If HM Treasury confirms that the 3.8% CPI increase will be applied to public service pension schemes, your EAPF pension would be affected in the following ways:
- Contributing members – the total amount of career average (CARE) pension* built up to 31 March 2026 would be increased by 3.8% on 6 April 2026. In addition, changes to the contribution bandings, which are increased by CPI on 1 April each year, could mean that you end up falling into a lower contribution band, so you’d be paying less for your pension, but not losing out on any of the pension you build up!
- Deferred and pensioner members – If you’ve been receiving a pension from the EAPF for at least a full year by April 2026 or, if you’ve had a deferred pension with the EAPF for at least a full year before April 2026, these would increase by 3.8% on 6 April 2026. However, if you haven’t had either for a full year by April 2026, then you might receive a smaller increase.
*This includes any additional pension you may have bought up to 31 March 2026, or any transfers into the Scheme between 1 April 2014 and 31 March 2026, where you acquired an amount of ‘earned pension’, rather than final salary membership.
Expected pay bands from 1 April 2026:
| Band |
Current pay bands |
Main Section contribution rate 1/49th accrual |
50/50 Section* contribution rate |
Expected pay bands from 1 April 2026 |
| 1 |
Up to £17,800 |
5.5% |
2.75% |
Up to £18,400 |
| 2 |
£17,801 - £28,000 |
5.8% |
2.9% |
£18,401- £29,000 |
| 3 |
£28,001 - £45,600 |
6.5% |
3.25% |
£29,001 - £47,300 |
| 4 |
£45,601 - £57,700 |
6.8% |
3.4% |
£47,301 - £59,800 |
| 5 |
£57,701 - £81,000 |
8.5% |
4.25% |
£59,801 - £84,000 |
| 6 |
£81,001 - £114,800 |
9.9% |
4.95% |
£84,001 - £119,100 |
| 7 |
£114,801 - £135,300 |
10.5% |
5.25% |
£119,101 - £140,400 |
| 8 |
£135,301 - £203,000 |
11.4% |
5.7% |
£140,401 - £210,700 |
| 9 |
£203,001 or more |
12.5% |
6.25% |
£210,701 or more |
*50:50 Section contribution rates only apply if you’ve chosen to be in the 50:50 section instead of the Main Section.