Westminster Policy News & Legislative Analysis

NI sets 2026 public service revaluation: CPI 3.8, AWE 4.8

Northern Ireland has confirmed the 2026 revaluation parameters for public service pension schemes, setting the indices used to uprate career‑average benefits. For the 2026 exercise, the prices measure is 3.8 per cent (Consumer Prices Index to September 2025) and the earnings measure is 4.8 per cent (Whole Economy Average Weekly Earnings to September 2025). (finance-ni.gov.uk)

The Order takes effect on 1 April 2026. For the Local Government Pension Scheme (Northern Ireland) and the Health and Social Care Pension Scheme, revaluation operates from 6 April 2026 to align with the tax year boundary. (finance-ni.gov.uk)

Section 9 of the Public Service Pensions Act (Northern Ireland) 2014 requires the Department of Finance to set, each year, the percentage change in prices and/or earnings used to revalue pension earned by active members in career‑average schemes; scheme regulations then apply those indices. (legislation.gov.uk)

How the indices are defined matters for administrators. The prices element takes the Consumer Prices Index up to September 2025; the earnings element uses the Whole Economy year‑on‑year change in Average Weekly Earnings to September 2025, on a non‑seasonally adjusted basis including bonuses and arrears. This yields 3.8 per cent for price‑linked revaluation and 4.8 per cent for earnings‑linked revaluation in 2026. (questions-statements.parliament.uk)

In Northern Ireland, most devolved public service schemes use prices for revaluation, with firefighters using earnings under their scheme rules. A Department of Finance screening document published in January 2026 referenced a 4.6 per cent earnings figure; Treasury’s 26 February statement confirms the Whole Economy AWE change at 4.8 per cent for 2026, which administrators should apply. (finance-ni.gov.uk)

Effective dates differ slightly by scheme in order to manage interactions with the annual allowance. The Department’s revaluation order applies on 1 April, while certain schemes, including LGPS (Northern Ireland) and Health and Social Care, apply revaluation from 6 April; this approach mirrors the position confirmed for 2025 and is retained for 2026. (finance-ni.gov.uk)

The revaluation order concerns active members’ accrual only. Pensions already in payment are uprated separately under the annual public service pensions increase process, which for 2026 applies a 3.8 per cent increase from 6 April. (gov.uk)

The Department’s equality screening lists the affected Northern Ireland schemes and responsible departments: Civil Service (Department of Finance); Judicial and Police (Department of Justice); Local Government (Department for Communities); Teachers (Department of Education); and Health and Social Care and Fire & Rescue (Department of Health). The 2026 order supplies the index values those scheme rules reference. (finance-ni.gov.uk)