NHS pensions in payment and deferred benefits increase annually in line with CPI. The April 2026 increase is 1.7% (based on September 2025 CPI). Here's what that means for current and future pensioners.
The Two Types of Pension Increase
There are two separate annual increases that affect NHS pensions:
1. Pensions Increase (PI): Applies to pensions already in payment and deferred pensions. Based on September CPI. April 2026 increase = 1.7%
2. CARE Revaluation: Applies to active members' accrued CARE benefits (2015 scheme). Based on CPI + 1.5%. April 2026 revaluation = 3.2% (1.7% + 1.5%)
These are different mechanisms affecting different groups of people.
April 2026 Pensions Increase — 1.7%
If you're already receiving an NHS pension, your annual pension increases by 1.7% from April 2026. This applies to:
• All NHS pensions in payment (1995, 2008, and 2015 scheme)
• Deferred pensions (you've left the NHS but haven't claimed yet)
• Survivor pensions
• Injury benefits
The increase is automatic — you don't need to do anything. It will be reflected in your April 2026 pension payment.
| Current Annual Pension | 1.7% Increase | New Annual Pension | Monthly Increase |
|---|---|---|---|
| £10,000 | +£170 | £10,170 | +£14 |
| £15,000 | +£255 | £15,255 | +£21 |
| £20,000 | +£340 | £20,340 | +£28 |
| £25,000 | +£425 | £25,425 | +£35 |
| £30,000 | +£510 | £30,510 | +£43 |
CARE Revaluation — 3.2% for Active Members
If you're still working in the NHS and building pension in the 2015 CARE scheme, all your previously accrued CARE benefits are revalued by 3.2% (CPI 1.7% + 1.5%) in April 2026.
This means every £1 of pension you've already built up grows by 3.2p. Over a career, this compounds significantly:
• £594 accrued in 2026/27 (Band 5 entry)
• After 1 year of revaluation at 3.2%: £613
• After 5 years of revaluation at 3.2%/year: £690
• After 10 years: £811
• After 20 years: £1,109
This revaluation is what makes the 2015 CARE scheme genuinely valuable despite being "career average" rather than "final salary".
ℹ️CPI + 1.5% Is Extremely Generous — Most private sector defined contribution pensions don't offer any guaranteed growth rate. The NHS 2015 scheme guarantees CPI + 1.5% revaluation on all accrued benefits every year until retirement. Even with modest CPI, this consistently outperforms inflation.
Historical Pension Increases
| April | CPI (Sept) | Pensions Increase | CARE Revaluation |
|---|---|---|---|
| 2021 | 0.5% | 0.5% | 2.0% |
| 2022 | 3.1% | 3.1% | 4.6% |
| 2023 | 10.1% | 10.1% | 11.6% |
| 2024 | 6.7% | 6.7% | 8.2% |
| 2025 | 1.7% | 1.7% | 3.2% |
| 2026 | 1.7% | 1.7% | 3.2% |
The 10.1% increase in April 2023 was the largest in decades, reflecting the cost-of-living crisis. Pensioners saw a significant boost that year.
Impact on the Annual Allowance
The pension increase and revaluation can affect your Annual Allowance position. For the 2015 CARE scheme, the "pension input amount" is calculated as the increase in your total accrued benefits over the year (including revaluation), multiplied by 16, plus any lump sum increase.
For most NHS staff below Band 8, this won't breach the £60,000 Annual Allowance. But senior staff, especially those with large accrued benefits from the 1995/2008 schemes, should check their position carefully. The 2023 increase (10.1%) caused Annual Allowance issues for some staff that year.
What About the 1995 and 2008 Schemes?
If you have preserved benefits in the 1995 or 2008 schemes (from service before 1 April 2022):
• 1995 scheme: Benefits are based on your final salary at retirement. They're not separately revalued — they grow automatically as your salary increases. After retirement, they increase by CPI.
• 2008 scheme: Similar to 1995 — final salary based, growing with salary until retirement.
For deferred members (who've left the NHS), 1995 and 2008 scheme benefits are revalued differently — typically by CPI but with some protections. Check your Annual Benefit Statement for the exact position.
Checking Your Benefits
You can check your current accrued pension benefits through:
1. Total Reward Statement (TRS): Available via ESR self-service for active members
2. Annual Benefit Statement (ABS): Sent annually by NHS Pensions
3. NHS Pensions Online: www.nhsbsa.nhs.uk/member-hub for deferred and active members
Your statement will show your accrued benefits as at 31 March of the previous year, plus a projection to your Normal Pension Age.