Pensions to Get a Boost in Northern Ireland: What You Need to Know About the 2025 Increase

The Department of Finance has announced a much-anticipated update for public service pensioners in Northern Ireland. Starting April 7, 2025, pensions will see an annual increase, reflecting changes in the cost of living.

Key Highlights:

• Who’s Affected: If you’re a public service pensioner whose payments began before April 8, 2024, expect a 1.7% increase in your pension. For those whose pensions started after this date, the increase will be adjusted proportionately.

• Why the Increase? This annual review is part of a long-standing policy to ensure pensions keep pace with living costs. The increase aligns with the Consumer Prices Index (CPI), a measure reflecting inflation over the past year up to September.

• Background: The shift to using the CPI for these calculations began in April 2011, moving away from the Retail Prices Index (RPI) used previously. This change aligns with practices across the UK, ensuring consistency and fairness.

• Consultations and Discussions: While formal consultations weren't required, the Department of Finance engaged with relevant authorities and informed trade unions (TUS) about the upcoming changes.

• Equality and Impact: The increase applies universally to all eligible public sector pensioners, ensuring no adverse impact on any specific group. Additionally, there are no new costs imposed on businesses or the voluntary sector, negating the need for a formal regulatory impact assessment.

• Financial Implications: The adjustment reflects the annual rise in CPI, with no additional financial burden on entities beyond what's customary.

This change mirrors similar adjustments made by HM Treasury for public service pensions in Great Britain, ensuring parity across the UK. The Department of Finance assures that the order is compatible with existing legislative requirements, maintaining compliance and transparency.

Stay informed and plan accordingly as this pension increase rolls out in April 2025, continuing a tradition of supporting public service retirees in alignment with economic trends.