September inflation is 3.5%, so armed forces pensions look set to rise 3.5% in April 2027
The Office for National Statistics said on 21 October 2026 that the Consumer Prices Index (CPI) rose by 3.5% in the 12 months to September 2026, up from 3.1% in August. That is the reading armed forces pensions follow. Pensions in payment and preserved pensions rise each April by CPI to the previous September, so the April 2027 increase is expected to be 3.5%. It is not law yet. The Treasury still has to make the Pensions Increase (Review) Order 2027, and on last year's timetable that happens in March.
Key takeaways
- CPI rose 3.5% in the 12 months to September 2026, the ONS said on 21 October 2026. In August it was 3.1%.
- Armed forces pensions rise each April by CPI to the previous September, so April 2027 is expected to bring a 3.5% increase.
- The rate is not law yet. It is applied by a Treasury Pensions Increase (Review) Order. Last year's was made on 9 March 2026 and came into force on 6 April 2026.
- It applies automatically to pensions in payment and to preserved pensions. You do not need to claim it.
- AFPS 75 and AFPS 05 pensions, and EDP income, stay flat until 55. Ill-health and survivors' pensions are increased from the start.
- 3.5% is lower than the 3.8% paid in April 2026, and well above the 1.7% of April 2025.
What the ONS published
The ONS's consumer price inflation bulletin for September 2026, released on 21 October 2026, says: "The Consumer Prices Index (CPI) rose by 3.5% in the 12 months to September 2026, up from 3.1% the previous month." Prices rose 0.4% in September alone, against little change a year earlier.
| 12 months to | CPI |
|---|---|
| September 2025 (set the April 2026 increase) | 3.8% |
| April 2026 | 2.8% |
| May 2026 | 2.8% |
| June 2026 | 2.6% |
| July 2026 | 2.9% |
| August 2026 | 3.1% |
| September 2026 (sets the April 2027 increase) | 3.5% |
CPI was below 3% every month from April to July 2026, so September's jump matters. Only the September reading sets the increase. The months either side of it make no difference.
Why September's figure is the one that counts
Armed forces pensions are public service pensions, and they rise each April by the same percentage as every other public service pension. Under section 59 of the Social Security Pensions Act 1975, when the Department for Work and Pensions directs its annual increase, the Treasury must make an order raising public service pensions by the same percentage. That increase follows CPI for the 12 months to the previous September.
Last year shows the pattern. CPI was 3.8% in the 12 months to September 2025, and armed forces pensions rose 3.8% from 6 April 2026 under the Pensions Increase (Review) Order 2026.
Expected, not yet confirmed. 3.5% is the CPI figure. The legal increase is the one in the 2027 order, which has not been made. Our 2027 pension increase page will carry the confirmed rate when it is.
What 3.5% means in pounds
If the order confirms 3.5%, a pension in payment rises by £35 a year for every £1,000. Some examples, before tax:
| Annual pension now | Rise of 3.5% | From April 2027 |
|---|---|---|
| £8,000 | £280 | £8,280 |
| £12,000 | £420 | £12,420 |
| £20,000 | £700 | £20,700 |
| £30,000 | £1,050 | £31,050 |
A lump sum you have already been paid does not change. The increase applies to the annual pension. To see what a run of increases does to your own figure, use the pension increase calculator.
Who gets it
- Pensions in payment rise automatically from April 2027.
- Preserved pensions go up by the same percentage while you wait, so the pension is worth more when it becomes payable. You still have to claim a preserved pension when the time comes.
- An AFPS 75 Immediate Pension, and EDP income, are paid flat until age 55. If you are under 55 in April 2027, the increase is banked with the others and added when you reach 55. Our guide to the armed forces pension increase at 55 works through the catch-up.
- Ill-health and survivors' pensions are increased from the start, whatever your age.
- AFPS 15 while you are serving is revalued in line with earnings, not CPI, so this figure does not apply to the pension you are building. It applies once the pension is deferred or in payment.
- A pension that started during 2026-27 gets part of the increase. In 2026 the increase fell by one twelfth for each month a pension had not been in payment, and the 2027 order is expected to use the same steps.
War Pension and AFCS payments
Compensation payments are uprated by their own rules, not by the pensions increase order. MOD says War Pension benefits and allowances are "uplifted annually using the Consumer Price Index (CPI) from the previous September", and AFCS guaranteed income payments rise each April on the same basis. In April 2026 both went up by 3.8%, and for War Pensions that was an average, because individual rates are rounded.
The April 2027 rates for both schemes have not been published. Today's figures are on our War Pension rates and AFCS tariff pages.
What happens next
- The Department for Work and Pensions' direction for 2027. The Treasury order must match it.
- The Pensions Increase (Review) Order 2027. The 2026 order was made on 9 March and came into force on 6 April 2026. We expect the 2027 order to follow a similar timetable, and it fixes the exact start date.
- Your April 2027 payment, which will show the new rate.
We will update this post and the 2027 pension increase page when the order is made.
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Frequently asked questions
Armed Forces Pension Calculator Team
We build the calculators and write the guides on this independent site, working from the official AFPS scheme rules and published sources such as gov.uk, Veterans UK and the Government Actuary's Department. We are not part of the MOD and we are not regulated financial advisers, so everything here is general information, not personal advice.
Sources: gov.uk · GAD factors · Veterans UK · Forces Pension Society · MoneyHelper.