Westminster Policy News & Legislative Analysis

State Pension: 39% protected payment revaluation from Apr 2026

The Department for Work and Pensions has set the revaluing percentage for transitional State Pension ‘protected payments’ at 39.0%. The State Pension Revaluation for Transitional Pensions Order 2025 (SI 2025/1219) comes into force on 22 December 2025 for advance awards and on 6 April 2026 for all other purposes. The instrument applies across England, Wales and Scotland.

Under the Pensions Act 2014, people reaching State Pension age from April 2016 receive the new State Pension. Where a person’s pre‑2016 record produced a starting amount above the full new State Pension at 6 April 2016, the excess is paid as a separate ‘protected payment’. Legislation requires that protected payments are revalued by the percentage increase in the general level of prices since 6 April 2016, determined by the last order in force before an individual reaches pension age.

The 2025 Order confirms that, for those reaching State Pension age on or after 7 April 2026, the cumulative increase in prices over the review period is 39.0%. In practice, this fixes the uplift applied to the protected payment element at award for this cohort; it does not affect people without a protected payment.

A worked illustration shows the effect. If a person’s protected payment calculated at 6 April 2016 was £10.00 a week, applying the 39% revaluing percentage at award would produce £13.90 a week before rounding rules are applied by the Department for Work and Pensions. The revaluing percentage reflects cumulative price growth since April 2016, as required by section 148AC of the Social Security Administration Act 1992.

The Order’s split commencement enables advance awards. From 22 December 2025, DWP may make awards on advance claims under regulation 15(1) of the Social Security (Claims and Payments) Regulations 1987 for people reaching pension age on or after 7 April 2026. For all other purposes, the Order operates from 6 April 2026.

This measure is distinct from the annual uprating of State Pension amounts in payment. Once a protected payment is being paid, it is uprated each year under the up‑rating process; for 2025/26, GOV.UK lists protected payments in payment as increasing by 1.7%. The 39% figure applies only to the pre‑award revaluation of the protected payment for those reaching pension age from April 2026.

Administratively, DWP and pension forecast tools will apply the revaluing percentage automatically when calculating awards for those with a protected payment in the affected cohort. Individuals without a protected payment are unaffected by this Order because their entitlement consists solely of the standard new State Pension and any separate increments.

The Order extends to Great Britain. Northern Ireland legislates separately on corresponding provisions; previous years’ NI instruments have mirrored the GB approach for protected payments, and a separate NI order would be expected in due course.