Local government pensions will increase by 3.8% in 2026

Each April your local government pension is increased to ensure that it retains its spending power in line with the rise in the cost of living. From 6 April 2026, local government pensions will increase by 3.8%. This increase is in line with September 2025’s adjustment in the Consumer Price Index (CPI).

April’s pension payment will be a combination of two different annual rates. The first is the current rate that applies from the 1st of the month to the 5th; the second is the increased rate that applies from the 6th to the 30th. The full 3.8% pension increase will be applied in May’s pension payment.

Any pension which has been in payment for less than a year will be increased by a proportionate amount depending on the number of months it has been in payment.

Merseyside Pension Fund is bound by the provisions of annual Review Orders issued by HM Treasury and has no discretion in applying your pension increase.