Civil Service Pensions will rise by only 1.7% from 7 April next year, following today`s ONS announcement of the September increase in the Consumers Prices Index (CPI). This will be the lowest year on year increase for over 4 years.

Civil Service pension increases are determined each year by her the September CPI figure, underpinned by legislation in the Social Security Act 1975 that links the increase to Social Security benefit increases that are linked to the CPI measurement of inflation. Prior to 2011 the link was with the higher Retail Prices Index, which is no longer recognised as “an appropriate measure of inflation”.

CSPA deputy General Secretary David Luxton commented: “ The increase of only 1.7% from next year will disappoint many members who are still struggling with higher energy prices from October, and the continuing high cost of food after the sharp price increases over the past two years. Also there will be no Winter Fuel Payment this year to anyone above the low threshold for Tax Credit.

“The expected “Swiftie” boost to inflation from the Summer boom in the hospitality sector has been offset by the year on year reduction in the cost of petrol and air fares over the past month.. The 1.7% increase will only apply to Civil Service pensions that have been in payment for 12 months, otherwise pro-rata increases will apply.

The State Pension, payable from age 66, will rise by 4.1% from April next year under the `Triple-Lock` that gives the higher of: CPI inflation; Average Earnings growth; or 2.5%. Average earnings rose by 4.1% (including bonuses) in the past year (averaged out over May-July). The final figure will be confirmed by the Chancellor, Rachel Reeves, in her Autumn Budget Statement on 30 October.