The government has set a 39% revaluation for ‘protected payments’ within the new State Pension. The State Pension Revaluation for Transitional Pensions Order 2025 was made on 25 November 2025, laid before Parliament on 27 November 2025, and applies to people reaching pensionable age on or after 7 April 2026. The figure tracks the rise in the general level of prices since 6 April 2016, as required by section 148AC of the Social Security Administration Act 1992, according to legislation published on legislation.gov.uk.

A protected payment is the portion of someone’s starting amount under the post‑2016 State Pension that sat above the full flat rate as at 6 April 2016. It typically stems from strong pre‑2016 entitlements, such as additional State Pension (SERPS or State Second Pension). The Pensions Act 2014 created this mechanism so those with larger legacy build‑ups did not see them wiped away when the new system began.

Before a person draws their State Pension, any protected payment is revalued by a single percentage that reflects price growth across the entire period from 6 April 2016 up to just before State Pension age. The 2025 Order fixes that percentage at 39% for those reaching pensionable age from 7 April 2026. The Order comes into force on 22 December 2025 for the purpose of making advance awards and on 6 April 2026 for all other purposes.

What this means in cash terms is straightforward. If your protected payment at 6 April 2016 was £10.00 a week, applying the 39% revaluation takes it to £13.90 when you hit State Pension age on or after 7 April 2026. A £25.00 protected payment would become £34.75. This sits on top of your main new State Pension entitlement at the point you claim.

Once in payment, the protected element is uprated each year in line with CPI under the annual social security uprating process, rather than the triple lock used for the main new State Pension amount. That difference matters: in years when earnings growth outpaces prices, the main pension can grow faster than the protected slice.

Eligibility isn’t universal. Many people have no protected payment at all; if your starting amount in April 2016 was at or below the full flat rate, there is nothing to revalue. Those most likely to see an impact are individuals with sizeable pre‑2016 additional State Pension accruals who have not yet reached State Pension age.

Timing is a quiet but important detail. The Order explicitly applies to people reaching pensionable age on or after 7 April 2026. If you reach State Pension age on 6 April 2026 or earlier, a previous revaluation percentage will have applied. The early commencement on 22 December 2025 simply allows the Department for Work and Pensions to process advance claims using the new figure.

From a planning perspective, treat the protected payment as a distinct, taxable top‑up to the State Pension. If you expect to retire in the 2026/27 tax year, check your State Pension forecast on GOV.UK and look for a line labelled ‘protected payment’. Build your retirement budget assuming that this portion follows price‑linked increases once in payment.

Administratively, the instrument extends to Great Britain-England, Wales and Scotland. It was signed by Torsten Bell, Parliamentary Under Secretary of State at the Department for Work and Pensions. The Explanatory Note states that no full impact assessment was produced, with no significant effects expected for the private, voluntary or public sectors.

Our read at Market Pulse UK: this is a mechanical update rather than a policy shift. The 39% figure reflects the broad rise in prices since April 2016 and preserves the real value of protected entitlements until people retire. For some with large SERPS histories the uplift will be noticeable; for many others the change will be modest but still worth factoring into cash‑flow plans.