Annual pension increase

Your railways pension is reviewed every year. It increases in line with orders published by the government, and matched to the Consumer Prices Index (CPI) figure from the previous September.

Your 2026 railway pension increase

The railways pension will increase by up to 3.8% for the 2026/27 tax year. This is coming into effect from ​​6 April 2026.

How much of this rise you get will depend on how long you have been a retired (or preserved) member and the rules of your specific Section.

For example, if you took your benefits or became a preserved pensioner on or after 22 April 2025, you won’t get the full amount because you’ve been retired, or preserved, for less than a year.

Spouses’ pensions increase in the same way.

If you’re 65 or older on 6 April 2026, you may also receive a lower increase from your railways pension. This is because your pension may include some ‘guaranteed minimum pension’, also known as GMP, which may increase at a lower rate.

You will get a letter in the spring confirming your new pension amount. You can also find your pension payment amount on your payslips in your myRPS account. 

If you have questions about your pension increase, you can find answers to some common queries below. 

For more information please check:

A £50 note, a small pile of coins and a cheque from the RPS
How much more will I get in my pension?
How much of the increase you get this year will depend on:

  • how long you have been a retired or preserved member
  • the rules of your specific Section

If you took your benefits, or became a preserved pensioner, on or after 22 April 2025, you won’t get the full increase because you’ve been retired, or preserved, for less than a year. 

You can see how this works below. 

Date you started claiming your pension
(or your pension became preserved) 		% increase to railways pension
21st April 2025 or before 3.8
22nd April – 21st May 20253.48
22nd May - 21st June 2025                                                       3.17
22nd June - 21st July 2025                                                           2.85
22nd July - 21st August 2025                                                      2.53
22nd August - 21st September 2025                                        2.22
22nd September - 21st October 2025                                      1.90
22nd October - 21st November 2025                                       1.58
22nd November - 21st December 2025                                  1.27
22nd December - 21st January 2026                                         0.95
22nd January – 21st February 2026                                          0.63
22nd February - 21st March 2026                                              0.32
On or after 22nd March 2026                                              0.00

If you’re 65 or older on 6 April 2026, you may also receive a lower increase. This is because your pension may include some ‘guaranteed minimum pension’ (GMP). With GMP, you usually get a lower increase from the Scheme and the government may top this up if you reached State Pension age before 6 April 2016. Some exceptions apply to married women who paid reduced National Insurance contributions and certain pensioners who worked or live abroad.

If you have questions about your GMP, you should contact your local pension centre. You can find details at gov.uk/contact-pension-service

 

How will my first pension payments for the new tax year be worked out?

Depending on when your pension is paid, you may receive part of your pension at the new four-weekly rate, and part at the old rate. The date of pension payments and weeks at the old and new rates may vary each tax year.

The table below shows how the pension increase for the 2026/27 tax year will be paid.

 Weeks at:
Date of pension payment Old rateNew rate
10/04/2026                                31
17/04/2026                                        2 2
24/04/2026                                        13
01/05/2026                                     04

 

Will my tax code change if my pension increases?

Your pension is a taxable income. The amount of tax you pay depends on your tax code, issued by HM Revenue & Customs (HMRC). We use your tax code to work out how much Income Tax to take from your pension. Tax is taken from your pension before it reaches your bank account.

If your income changes, HMRC may change your tax code. Your tax code is based on your own personal circumstances, and it may affect the amount you get at the new four-weekly rate, after tax.

You pay tax on your total annual income from all sources, including:

  • Your State Pension 
  • Your workplace pension 
  • Any earnings, for example if you are still working
  • Other pensions you are getting
  • Rental income

This may mean if your total annual income increases – for example when your State Pension or workplace pension increases – then HMRC may change your tax code. This could mean you pay more tax, so your ‘tax home pay’ is reduced. 

If your tax code changes, HMRC will usually contact you. You can see your current tax code on your P60. A copy is available in your myRPS account.

If you need more information about the tax you may need to pay, you will need to contact HMRC.

If your circumstances change - for example if you change your name due to marriage or divorce - it’s important you let us, and HMRC know as soon as possible. This can help to avoid any mix up with your tax code moving forward.

What should I do if I'm changing my bank account? 

If you're changing your bank or building society account, you must update your details at least 10 working days before your pension is due to be paid. You can log in to your myRPS account to update your bank details or find more information on the updating my bank details page. 

What to read next...

My pension payments and P60s

Find out how and when your pension is paid and where to find your P60. 

Penfriend

Read the latest Penfriend newsletter, packed full of useful information about your pension and stories from rail industry colleagues. 

The State Pension

This page explains how the State Pension works and what you might get.