This year the annual increases take effect from Monday 8 April 2024.

Old Section Pensions are increased each year in accordance with the Pensions (Increase) Act 1971. The amount of the increase is the percentage by which the Consumer Price Index (CPI) increased over the twelve months ending in the September of the previous year. This year’s CPI is 6.7%.

 If you reached State Pension age before 6 April 2016 and you were working prior to 6 April 1997, part of your pension increase is paid within your State Pension. As such, if you haven’t received the full 6.7% in your ITB Pension, you will have received an increase in your State Pension.

New Section Increases to pensions in payment are currently determined by reference to the annual rise in the Retail Price Index at the end of September each year: 

• Subject to a maximum of 5% in any one year in respect of pension accrued prior to 6 April 2005, and
• Subject to a maximum of 2.5% in any one year in respect of pension accrued on and after 6 April 2005. 

2007 Section Increases to pensions in payment are currently determined by reference to the annual rise in the Retail Price Index at the end of September each year, subject to a maximum of 2.5% in any one year. 

This year’s annual increases in respect of New Section pension are: 

• Capped at the maximum of 5% in respect of pensions accrued prior to 6 April 2005
• Capped at the maximum of 2.5% in respect of pensions accrued on and after 6 April 2005.

In respect of 2007 Section pension is capped at the maximum of 2.5%.