Information on Pensions Increase 2017

Under the provisions of the Pensions (Increase) Act 1971, made in accordance with the Social Security Pensions Act 1975, the increase to be applied to public sector pensions is 1% and is payable from 10 April 2017.

If you became a pensioner after 25 April 2016 you will only receive a proportion of the annual percentage increase. You will receive your first full percentage increase next year.
Pension Increase is only paid from age 55 with some exceptions, if the pension is an Ill Health or  dependant’s pension.

Pension Increase FAQs

Q.  Who decides on the pensions increase each year and when is it done?

A. The Secretary of State for Social Security makes the announcement in a draft Pensions   Increase (Review) Order which is approved by Parliament usually during March each year.  The new rate of increase takes effect from the first Monday after 5th April.

Q.  How much is the increase for 2017/2018?

A.  1% payable from 10 April 2017.  This is based on the Consumer Price Index as at September 2016.

Q.  Why does my first payslip, for payment due after 10 April 2017, not reflect a full month’s increase?

A.  Your pension this year is increased from 10 April 2017; therefore you will receive an increase in the rate payable only from that date.  The first payment will therefore consist of a number of days at the old rate and the rest at the new rate and the next payment will reflect your first full increase.

Q.  If this year’s Pensions Increase is 1%, why has my gross monthly amount not increased by that rate?

A. The full 1% Pensions Increase is applied from 10 April 2017 for pensions which started prior to 26 April 2016, where your pension began on or after 26 April 2016 you will only receive a proportionate increase this year.

Q. My increase does not work out to the full percentage increase, this could be for a number of reasons: -

(i) For any pension put into payment before age 55, the increase will not be applied until the 55th birthday, unless the member retired on health grounds, is a widow/ widower or is receiving a dependents benefit.
(ii)  If a pension was put into payment on or after 26 March 2017, no increase will be due until next year.

Q.  Why has my tax code changed?

A.  We are instructed by HMRC to apply the relevant tax code.  If your tax code has changed and you require further information or have any questions about your tax, please contact HMRC on 0300 200 3300 and have your National Insurance number to hand when you make your call.

If you have any further questions please email the Police and Fire Team at Police& This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Link to Scottish Government Website