The Department for Work and Pensions has set the revaluing percentage for ‘protected payments’ under the new State Pension at 39%. The change is made by the State Pension Revaluation for Transitional Pensions Order 2025 (SI 2025/1219) and applies to people who reach State Pension age on or after 7 April 2026.
A protected payment is the element paid on top of the full new State Pension where, on 6 April 2016, an individual’s ‘starting amount’ under transitional rules exceeded the full rate because of pre‑2016 Additional State Pension. GOV.UK explains that this top‑up is paid when someone would have received more under the old system.
The legal mechanism is set out in paragraph 6 of Schedule 1 to the Pensions Act 2014. Any amount above the 2016 full rate is revalued up to State Pension age in line with the ‘general level of prices’, using the most recent percentage specified by order under section 148AC of the Social Security Administration Act 1992. The 2025 Order sets that percentage at 39.0.
Timing is explicit in the instrument. It was made on 25 November 2025, laid before Parliament on 27 November 2025, and comes into force on 22 December 2025 for the purpose of making an award on an advance claim for someone reaching State Pension age on or after 7 April 2026; it takes effect for all other purposes on 6 April 2026. The Order extends to England, Wales and Scotland.
In practical terms, the revaluation happens at award. For example, a protected payment calculated as £100 a week at 6 April 2016 would become £139 a week for someone reaching State Pension age on or after 7 April 2026. After award, protected payments are uprated each year by CPI, not by the triple lock that applies to the full new State Pension.
Who is affected from April 2026? Primarily those with significant pre‑2016 Additional State Pension whose 2016 ‘starting amount’ exceeded the full new State Pension, creating a protected payment. People whose starting amount was at or below the full rate will not have a protected payment and are outside the scope of this revaluation rule. Note that State Pension age itself rises from 66 to 67 between 2026 and 2028 under existing legislation.
For claimants, the process is unchanged. The Pension Service issues an invitation to claim around three months before State Pension age; phone claims can be made up to four months ahead. From 22 December 2025, DWP can make awards on such advance claims using the 39% figure where State Pension age falls on or after 7 April 2026.
Context: this replaces last year’s position for the 2025 cohort. The 2024 Order set the revaluing percentage at 33.9% for those reaching State Pension age on or after 8 April 2025. The 39% now specified reflects cumulative price growth since 6 April 2016 as required by the legislation.
The explanatory note states that no impact assessment has been produced, as no significant effect on the private, voluntary or public sectors is foreseen. The instrument is signed on behalf of the Secretary of State for Work and Pensions by the Pensions Minister, Torsten Bell, consistent with his ministerial portfolio.