Ministers have made the State Pension Debits and Credits (Revaluation) Order 2025 (SI 2025/1220), which updates how inflation is applied to “relevant debits or credits” within the new State Pension. The instrument was made on 25 November and laid before Parliament on 27 November 2025, and applies in Great Britain.
The Order takes effect on two dates. It commences on 22 December 2025 solely so the Department for Work and Pensions can make awards on advance claims by people who will reach pensionable age on or after 7 April 2026. It then comes into force for all other purposes on 6 April 2026.
The policy area is pension sharing in the state system. Individuals who have a new state scheme pension credit (section 13 of the Pensions Act 2014) or are subject to a new state scheme pension debit (section 14) will see those amounts revalued using percentages set by this Order. The percentage used is the one specified by the last order in force before the person reaches pensionable age, as provided in Schedules 8 and 10.
The legal basis is section 148AD of the Social Security Administration Act 1992. Each year the Secretary of State reviews price changes and, if necessary, directs that relevant debits or credits be increased by a percentage that makes up any fall in value relative to prices. That percentage is then used in the statutory calculations in Schedules 8 and 10 to the 2014 Act.
The 2025 Order sets the appropriate revaluation percentages by tax year. For amounts arising in 2025–26 the percentage is 3.8%. Earlier years remain listed for use in cases where the debit or credit first arose in those years: 5.6% for 2024–25; 12.6% for 2023–24; 24.0% for 2022–23; 27.9% for 2021–22; 28.5% for 2020–21; 30.7% for 2019–20; 33.8% for 2018–19; 37.8% for 2017–18; and 39.2% for 2016–17.
In practical terms, a person under pensionable age who became entitled to a new state scheme pension credit in 2023–24 will have that credit multiplied by 1.126 at pension age, reflecting the 12.6% revaluation for that year. The same approach applies in reverse for debits: the reduction to the weekly pension is scaled by the appropriate percentage for the year the debit arose.
Which percentages actually apply to a case depends on timing. The statute directs DWP to use the percentage in the last revaluation order that is in force before the claimant reaches pensionable age. For people reaching pensionable age on or after 7 April 2026, this is the 2025 Order.
Territorial scope is limited to Great Britain: England, Wales and Scotland. The instrument does not extend to Northern Ireland. Claimants and advisers should therefore refer to GB rules unless a case falls under Northern Ireland provision.
This measure sits alongside separate regulations for transitional state pension amounts. On the same date, the State Pension Revaluation for Transitional Pensions Order 2025 was made under section 148AC; practitioners should distinguish that from the present Order, which applies to debits and credits from pension sharing.
The Order is signed by the Parliamentary Under Secretary of State for Work and Pensions, Torsten Bell. The Explanatory Note states that no significant impact is expected on the private, voluntary or public sector.