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NHS pensions will increase by 3.8% from April 2026. This applies to all pensions in payment and deferred pensions across the 1995, 2008, and 2015 NHS Pension Schemes. The increase is based on the September 2025 Consumer Prices Index (CPI) figure of 3.8%, as confirmed by the Office for National Statistics.
If you’re retired from the NHS and receiving your pension, or you’ve left the NHS with a preserved pension, this guide explains exactly how much more you’ll receive and when.
The annual pension increase for NHS retirees has been confirmed at 3.8% from April 2026.
This is good news compared to last year. In April 2025, pensions only rose by 1.7% because the September 2024 CPI was much lower. This year’s 3.8% increase means your pension will grow more than twice as fast as it did last year.
Here’s what you need to know:
The increase is set by the Pensions Increase (Review) Order 2026, which is the legal mechanism HM Treasury uses to uplift public sector pensions each year. Every public sector pension scheme — including NHS, Teachers, Civil Service, and Local Government — uses the same September CPI figure.
💡 Key Point: The 3.8% increase is more than double last year’s 1.7% rise. This provides better protection against cost-of-living pressures for NHS pensioners in 2026.
Your increased pension will be applied from April 2026. You don’t need to do anything — it happens automatically.
Here’s the timeline:
| Milestone | Date |
|---|---|
| September 2025 CPI announced | October 2025 |
| Pensions Increase Order confirmed | February 2026 |
| New pension rates applied | April 2026 |
| First increased payment | April 2026 |
| NHSBSA notification letters sent | By end of May 2026 |
The NHS Business Services Authority (NHSBSA) administers NHS pensions and will send you an “advice of payment” letter by the end of May 2026. This letter confirms your new pension amount for the year ahead.
📋 What to Expect: Check your bank statement in April to see your increased pension payment. Your notification letter from NHSBSA will arrive by the end of May, confirming the exact new amount.
Working out your new pension is simple. Just multiply your current pension by 1.038.
Here are some examples to show what the 3.8% increase means in real money:
| Current Monthly Pension | 3.8% Increase | New Monthly Pension |
|---|---|---|
| £500 | +£19.00 | £519.00 |
| £750 | +£28.50 | £778.50 |
| £1,000 | +£38.00 | £1,038.00 |
| £1,250 | +£47.50 | £1,297.50 |
| £1,500 | +£57.00 | £1,557.00 |
| £2,000 | +£76.00 | £2,076.00 |
| Current Annual Pension | 3.8% Increase | New Annual Pension |
|---|---|---|
| £6,000 | +£228 | £6,228 |
| £9,000 | +£342 | £9,342 |
| £12,000 | +£456 | £12,456 |
| £15,000 | +£570 | £15,570 |
| £18,000 | +£684 | £18,684 |
| £24,000 | +£912 | £24,912 |
Simple formula: New pension = Current pension × 1.038
💡 Tip: If your pension started less than 12 months ago, you’ll receive a pro-rata increase. For example, if your pension began in October 2025, you’d receive roughly half the full increase (approximately 1.9%).
The 3.8% increase applies to all NHS Pension Scheme sections. It doesn’t matter which scheme you’re in — you get the same percentage uplift.
| Scheme | Increase | Type |
|---|---|---|
| 1995 Section | ✅ 3.8% | Final salary (closed) |
| 2008 Section | ✅ 3.8% | Final salary (closed) |
| 2015 Scheme | ✅ 3.8% | Career Average (CARE) |
| Deferred Pensions | ✅ 3.8% | All preserved benefits |
If you retired years ago under the 1995 scheme, you get 3.8%. If you retired recently under the 2015 scheme, you also get 3.8%. The increase is the same across all sections.
This also applies to deferred pensions — if you’ve left the NHS but haven’t yet started claiming your pension, your preserved benefits will also increase by 3.8% from April 2026.
📌 Key Point: The 3.8% increase applies regardless of which NHS Pension Scheme section your benefits are from. All retired and deferred members receive the same percentage uplift.
You might be wondering how the NHS Pension increase compares to the State Pension. Here’s the difference:
| Pension Type | April 2026 Increase | How It’s Calculated |
|---|---|---|
| NHS Pension | 3.8% | September 2025 CPI |
| State Pension | 4.8% | Triple Lock (earnings growth) |
The State Pension rises by 4.8% from April 2026 — a full percentage point higher than the NHS Pension increase. This is because the State Pension is protected by the Triple Lock.
What’s the Triple Lock?
The Triple Lock guarantees the State Pension increases by whichever is highest:
Since average earnings growth (4.8%) was highest this year, that’s what the State Pension uses. NHS Pensions only follow CPI, so they get 3.8%.
New State Pension rates from April 2026:
If you receive both an NHS Pension and State Pension, you’ll see both increase in April 2026 — your NHS Pension by 3.8% and your State Pension by 4.8%.
If you’re still working in the NHS and paying into your pension, the rules are slightly different. You don’t receive the 3.8% increase on payments because you’re not receiving payments yet. Instead, your pension pot is revalued.
Active members in the 2015 NHS Pension Scheme build up benefits using Career Average Revalued Earnings (CARE). Each year, your built-up pension is revalued by CPI plus 1.5%.
For April 2026, this means:
This 5.3% revaluation helps your pension pot grow faster than inflation while you’re still working.
Important distinction:
If you’re currently working and want to understand your pension contributions, see our guide on NHS Pension Contributions 2026/27.
Possibly. This is something many NHS pensioners overlook.
The personal tax allowance has been frozen at £12,570 since 2021, and it stays frozen until at least April 2028. This means more pensioners are being pulled into paying tax as their pensions increase but the threshold stays the same.
Here’s an example:
If your current annual pension is £12,400 and you receive the 3.8% increase (£471), your new pension would be £12,871. That’s now £301 above the personal allowance, meaning you’d pay 20% tax on that £301 (around £60 per year).
The higher rate threshold is also frozen at £50,270. If your combined income (NHS Pension plus State Pension plus any other income) exceeds this, you’ll pay 40% tax on the excess.
⚠️ Tax Warning: If your 3.8% pension increase pushes your total income over a tax threshold, you may pay more tax than before. The personal allowance (£12,570) and higher rate threshold (£50,270) remain frozen.
Tip: Add up all your income sources — NHS Pension, State Pension, private pensions, rental income, etc. — to check where you stand against tax thresholds. Use our NHS Tax Calculator to estimate your tax position.
Understanding how the increase is calculated helps you know what to expect in future years.
The process works like this:
Why September?
September is used because it gives enough time for the government to pass the necessary legislation before the April increase. It’s been this way since 2011 when public sector pensions switched from RPI (Retail Prices Index) to CPI.
| Year | September CPI | Pension Increase (April) |
|---|---|---|
| 2024 | 6.7% | April 2024: 6.7% |
| 2024 | 1.7% | April 2025: 1.7% |
| 2025 | 3.8% | April 2026: 3.8% |
As you can see, the percentage varies each year depending on inflation. Last year’s 1.7% was unusually low, while this year’s 3.8% is closer to the long-term average.
📌 Key Point: NHS pension increases are based on September CPI, announced in October, and applied the following April. This year’s 3.8% reflects the September 2025 inflation rate.
The 3.8% increase applies across the entire United Kingdom. It doesn’t matter where you live or where you worked — the increase is the same.
| Region | Increase | Administrator |
|---|---|---|
| England | 3.8% | NHS Business Services Authority |
| Wales | 3.8% | NHS Business Services Authority |
| Scotland | 3.8% | Scottish Public Pensions Agency |
| Northern Ireland | 3.8% | HSC Pension Service |
All four UK nations use the same September CPI figure for public sector pension increases. The only difference is which organisation administers your pension and sends your letters.
If you worked in Scotland, your pension is administered by the Scottish Public Pensions Agency (SPPA) rather than NHSBSA, but the 3.8% increase is identical. For information about current NHS Scotland pay or NHS Wales pay, see our regional guides.
NHS pensions will increase by 3.8% from April 2026. This applies to all pensions currently being paid and all deferred pensions across the 1995, 2008, and 2015 NHS Pension Scheme sections.
The increased pension will be applied from April 2026. Your first higher payment will arrive in April, and the NHS Business Services Authority will send confirmation letters by the end of May 2026.
NHS pension increases are based on the Consumer Prices Index (CPI) from the previous September. The September 2025 CPI was 3.8%, so pensions increase by 3.8% from April 2026.
For April 2026, yes. The 3.8% increase matches the September 2025 CPI inflation rate, meaning your pension maintains its purchasing power. However, if inflation rises above 3.8% during 2026, there could be a real-terms gap until the next April increase.
Yes. If you’ve left the NHS but haven’t yet claimed your pension (a deferred pension), your preserved benefits will also increase by 3.8% from April 2026.
You’ll receive a pro-rata increase based on the number of complete months since your pension started. For example, if your pension began in October 2025, you’d receive approximately half the full increase.
The State Pension increases by 4.8% from April 2026 — higher than the NHS Pension’s 3.8%. This is because State Pension is protected by the Triple Lock (highest of CPI, earnings growth, or 2.5%), while NHS Pension follows CPI only.
Possibly. The personal tax allowance remains frozen at £12,570. If your 3.8% pension increase pushes your total income above this threshold, you may pay more tax. Use our NHS Tax Calculator to check.
Yes. The 3.8% increase applies to NHS pensions across all UK nations, including Scotland. Scottish NHS pensions are administered by the Scottish Public Pensions Agency (SPPA) but follow the same CPI-linked increase.
Want to see exactly how much your NHS pension will be after the 3.8% increase?
Quick calculation: Multiply your current pension by 1.038
For example:
For a more detailed calculation including tax implications, use our NHS Pension Calculator.
| What You Need to Know | Answer |
|---|---|
| How much is the increase? | 3.8% |
| When does it start? | April 2026 |
| What’s it based on? | September 2025 CPI |
| Does it apply to all schemes? | Yes — 1995, 2008, and 2015 |
| Does it apply to deferred pensions? | Yes |
| How does it compare to State Pension? | State Pension gets 4.8% (higher) |
| Do I need to do anything? | No — automatic |
| When will I get a letter? | By end of May 2026 |
The 3.8% NHS pension increase for April 2026 provides welcome relief after last year’s modest 1.7% rise. While it’s lower than the State Pension’s 4.8% increase, it matches the September 2025 inflation rate, helping your pension maintain its value against rising costs.
Your increased payment will arrive automatically in April 2026. Keep an eye on your bank statement and watch for your confirmation letter from NHSBSA by the end of May.
