Royal Mail pension increase 2026: in April, Sections A and B follow CPI (3.8% to September 2025) and Section C follows RPI capped at 5% (4.5%).
Royal Mail pension increase 2026: what to expect and when
If you worked for Royal Mail before April 2012, your pension is paid by two schemes, and both raise it every April. The Royal Mail Pension Plan says it will "write to you at the end of March to tell you how much you'll receive", so the letter, not a press headline, shows your own figure. Unsure which part of your pension rose by what in March? An FCA-authorised adviser can ring without charge and untangle it; just use the form on this page.
For April 2026 the rules point to 3.8% for Sections A and B, the rise in the Consumer Prices Index (CPI) over the 12 months to September 2025, and 4.5% for Section C, the Retail Prices Index (RPI) rate for September 2025, which is under the 5% cap. Those are the Office for National Statistics (ONS) rates the rules use, not a Royal Mail announcement, so your letter remains the figure to trust; a pension that started recently can rise by less, for reasons covered below.
How the rules set the rise: Section A, B or C
Which section you are in decides the index. The Plan's own wording for each:
| Section | Pension in payment rises by |
|---|---|
| A and B | "in line with inflation, as measured by the 'Consumer Prices Index'", applied to the whole pension |
| C | "the rate of the Retail Prices Index (RPI) over the previous year or by 5%, whichever is the lower" |
Both sections usually get their rise each April, when there was inflation in the previous September. The cap on Section C matters in a year of high inflation, because it can leave a Section C pension rising by less than the RPI. Your section depends on when you joined: Section A before 1 December 1971, Section B between then and 31 March 1987, and Section C after that, as the Statutory Pension Scheme's 2024-25 accounts set out.
A guaranteed minimum pension element can follow separate rules, covered in whether a guaranteed minimum pension increases.
Royal Mail pension increase dates: April 2024 to April 2026
For April 2024, the Statutory Pension Scheme's 2024-25 accounts record that for Sections A and B, pensions "were increased in April 2024, reflecting the 6.7% increase in the CPI for the year ended September 2023", and for Section C, "increased by 5.0% in April 2024", with the RPI for that period "limited to a maximum increase of 5.0%". No discretionary increases were awarded.
| When | Sections A and B (CPI) and Section C (RPI, 5% cap) |
|---|---|
| April 2024 | Awarded by the Statutory Pension Scheme: Sections A and B 6.7% (CPI to September 2023), Section C 5.0% (the cap). |
| April 2025 | CPI to September 2024: 1.7%. RPI for September 2024: 2.7%, under the cap (ONS). |
| April 2026 | CPI to September 2025: 3.8%. RPI for September 2025: 4.5%, under the cap (ONS). |
The 2025 and 2026 rows are the published inflation rates that the section rules use, not figures from Royal Mail's own letters; your own amount for each year sits on the letter you were sent that March. Looking ahead to next April, the ONS figures released on 21 October 2026 are 3.5% for CPI and 3.9% for RPI over the year to September 2026, and the letter at the end of March will confirm what that means for you. Reading it next to the section rules above is the quickest check that you were paid correctly.
Does the pre-2012 part of your pension rise the same way?
The pension you earned before April 2012 is paid by the Royal Mail Statutory Pension Scheme. The Plan's guide describes it as set up "by the Government in April 2012" and "responsible for paying the benefits you earned before that date". Its accounts list "calculating and paying annual pension increases" among its day-to-day tasks, and record the April 2024 rises as made "in accordance with scheme regulations": CPI for Sections A and B and RPI capped at 5% for Section C, the same measures as the Plan. So the pre-2012 slice of a Section C pension rose by 5.0% that April, not by the CPI figure.
The Plan's news page says pensioners get a separate P60 for the part of their pension paid by the Statutory Pension Scheme, which is one way to see how your income is split between the two. How other final salary schemes handle yearly rises is in do final salary pensions increase.
Why your letter may show less than the headline rate
The Plan says that if you started taking your pension "within two weeks of the start of a new Plan Year (year commencing 1 April), you might not be eligible for your first yearly increase until the following Plan Year". A later start means "your first yearly increase might be lower to reflect this".
A different number can also appear for the Cash Balance fund, which holds what you built up from 1 April 2018. The Plan says these benefits "are normally increased each year in accordance with a policy set by Royal Mail". The fund was increased by 3.7% on 1 April 2025 and by 6.4% on 1 April 2026, for current employees and those who left since 1 April 2018 and are not yet 65. Those are not rises to a pension already being paid.
More about Royal Mail pension rises
Does the Royal Mail pension increase every year?
Yes, pensions in payment normally rise each April when there was inflation in the previous September. If prices did not rise, there may be no increase that year.
When does my Royal Mail pension increase?
The rise takes effect in April, and the letter showing it arrives at the end of March.
Is Section C increased differently from Section A and B?
Yes. Section C uses RPI with a 5% cap; Sections A and B use CPI. Which of the two gives more depends on the year, so neither is always better.
Is my State Pension raised in the same way?
No, the two are separate. The State Pension has its own yearly uprating, covered in the UK State Pension explained, and how the two fit together is in final salary pension and State Pension.
Where can I read more about the scheme?
Start with what the Royal Mail pension scheme is, then how big employers' final salary schemes work for comparison. For taking money out, see the Royal Mail pension lump sum and taking a Royal Mail pension early.
Can I swap my future increases for more pension now?
Some schemes offer that. The trade-off is set out in pension increase exchange. Giving up future rises is awkward to reverse, so before deciding, hear what an FCA-authorised adviser makes of your figures, at no cost; this page's form can arrange the call.
Sources: Royal Mail Pension Plan, Increases to your pension; Royal Mail Statutory Pension Scheme accounts 2024-25; ONS, Consumer price inflation, UK: September 2025; ONS, Consumer price inflation, UK: September 2026; Royal Mail Pension Plan, News.