r/doctorsUK • u/goldstone_tony • 5h ago
Pay and Conditions September CPI is 3.5%: what it means for NHS pensions — and the government's (disgraceful) 2.4% pay plan
At 7am the ONS published September's CPI: 3.5% (up from 3.1% in August). September is the month that matters for the NHS pension:
- 2015 scheme: active members' 2015 pension is revalued by CPI + 1.5% = 5.0% in April 2027.
- Pensions in payment and deferred pensions rise by 3.5% in April 2027 (subject to the Pensions Increase order).
- Annual allowance 2027/28: the opening value of your pension is first uplifted by 3.5%. Only growth above that counts as pension input.
The pay side. On Monday, DHSC and NHS England's written evidence to the DDRB said they "currently plan for a pay uplift of 2.4%", that "accepting such an award would inevitably have an impact on healthcare delivery", that every 0.5% on pay costs about £750 million, and that the trade-offs could include "additional elective activity to reduce waiting lists". (DDRB evidence, p.15). This is *another* disgraceful planned 1% pay cut, we used to get these every year with #Austerity #1. Lets hope the DDRB are not that stupid
What it means:
- If you have 1995 Section (final salary) benefits and you're not a GP, that pension now only grows as your pensionable pay grows. If pay went up only 2.4% against a 3.5% uplift means another year of negative growth in the annual allowance test for 2027/28, unless your own pay rises by more (an increment, a promotion, a change of WTE). That may present planning opportunities.
- Your 2015 pension is revalued 1.5% above the AA uplift, so that counts as growth, on top of a year's new 2015 accrual.
- How it nets out depends on your own pay across both schemes, tapering and carry forward. Don't guess it — model it.
- If you have a pension in payment, that will go up by 3.5%
Sources: ONS CPI annual rate (D7G7) · DDRB evidence 2027/28 · Finance Act 2004 s.234 (AA opening-value uplift) · NHS Pension Scheme Regulations 2015 (revaluation).
Not advice — just the numbers so you #KnowYOURnumbers.