The Department for Work and Pensions has made the State Pension Debits and Credits (Revaluation) Order 2025, setting updated price‑based revaluation for the new state pension’s divorce‑related debits and credits. The instrument was made on 25 November 2025, laid on 27 November 2025, and applies to people reaching pensionable age on or after 7 April 2026; for advance claims, award decisions reflecting these rules may be made from 22 December 2025. It extends to England, Wales and Scotland, and comes into force for all other purposes on 6 April 2026.
In practical terms, a ‘relevant debit’ is a reduction and a ‘relevant credit’ is an increase to an individual’s new state pension arising from pension sharing on divorce. The order updates those amounts so they maintain their value relative to prices, with the percentages applied by reference to the last revaluation order in force before the person reaches pensionable age.
The legal basis is section 148AD of the Social Security Administration Act 1992, which requires an annual review of the general level of prices and empowers the Secretary of State to direct increases where earlier adjustments have not preserved value. The adjustments operate for the purposes of paragraph 3 of Schedules 8 and 10 to the Pensions Act 2014, which set the ‘appropriate weekly rate’ and ‘reduction’ used in these calculations.
The Schedule to the order specifies the cumulative percentage increases to apply, by the tax year in which the debit or credit originally arose. The figures range from 39.2 percent for 2016–17, 37.8 percent for 2017–18, 33.8 percent for 2018–19, 30.7 percent for 2019–20 and 28.5 percent for 2020–21, to 27.9 percent for 2021–22 and 24.0 percent for 2022–23. More recent years are 12.6 percent for 2023–24, 5.6 percent for 2024–25, and 3.8 percent for 2025–26.
Scope is limited to the new state pension framework under Part 1 of the Pensions Act 2014 and the pension‑sharing provisions referenced in section 49A(2) of the Welfare Reform and Pensions Act 1999. It does not alter entitlement rules or headline state pension rates, only the revaluation of divorce‑related debits and credits used in award calculations.
The timing provisions are designed so the 2025 order is the ‘last order’ in force for cohorts reaching pensionable age from 7 April 2026. Article 1 allows advance awards under regulation 15(1) of the Social Security (Claims and Payments) Regulations 1987 to be made from 22 December 2025, ensuring claims processed ahead of pensionable age can reflect the updated percentages.
For individuals, the effect is symmetrical. A credit first created in 2016–17 increases by 39.2 percent under this order; a £10 weekly credit becomes £13.92 when applied at award. Equally, a debit from the same year increases in absolute terms by the same percentage, so a £10 weekly reduction becomes £13.92. The 2025–26 percentage of 3.8 percent would raise a £10 amount to £10.38. Figures are illustrative; actual awards depend on case history and the year the debit or credit arose, as specified in the Schedule.
Administratively, the percentages are applied within the existing statutory calculation at the point of award. Under paragraph 3 of Schedules 8 and 10, the ‘appropriate weekly rate’ and any reduction are revalued by the percentage specified by the last order before pensionable age, which for this cohort is the 2025 instrument.
The order is signed by the Parliamentary Under Secretary of State for Work and Pensions, Torsten Bell, dated 25 November 2025. The Explanatory Note confirms no full impact assessment was produced because no, or no significant, impact on the private, voluntary or public sector is foreseen.