Newsletter

Your Scheme pension receives increases each year to help protect its value against rising prices. The rate of these increases is set out in law. The Government has confirmed that from 6 April 2026, Scheme pensions should increase by 3.8%. The actual increase you receive depends on when your pension started. In addition, this increase may not be applied to the full amount of your pension (see ‘Your increase in more detail’ in the next column). You will start to receive your increased monthly pension in April. The pension payment you receive in April will include the increased amount due between 6 April and 30 April.

Your Scheme pension goes up in April each year in line with the cost of living, as measured by change in the Consumer Prices Index (‘CPI’) over the year to the previous September. Over the year to 30 September 2025, the CPI went up by 3.8%. Members who were receiving a Scheme pension on 21 April 2025 receive the full amount of this increase. If you are receiving a dependant’s pension and your partner was receiving a Scheme pension on 21 April 2025 you will also receive the full amount of this increase. Members who have started to receive a previously deferred (frozen) pension since 21 April 2025 will also receive the full amount of this increase. If you are over State Pension Age and your pension includes benefits built up in the Scheme between April 1978 and March 1997, you may not receive the full amount of this increase. This is because during this period you built up a ‘Guaranteed Minimum Pension’ – and this part of your pension increases in a different way. There is more about this on the Scheme website. 

All other members whose pension started after 22 April 2025 may receive a proportionately smaller increase. The table on the right shows the increases that apply. Unless you previously requested a monthly paper payslip, you receive them as follows:

• once a year following the annual Pensions Increase exercise (you also receive a paper P60 each year)

• if your pension amount changes as a result of your tax code changing If there is any reason you feel it is essential to receive a paper payslip monthly, please email the Pensions Team at lbspensions@southwark.gov.uk.

From 6 April 2026 the personal allowance – the amount you need to earn before you pay income tax – remains £12,570. Over the personal allowance, here are the rates of UK income tax that will apply in the 2026-27 tax year. Basic tax rate 20% on income up to £37,700 Higher tax rate 40% on income from £37,701 to £125,140 Additional tax rate 45% on income above £125,140.

Do you live mainly in Scotland?

If your main place of residence is in Scotland, you may have to pay Scottish income tax. The tax rates in Scotland are different from those set out above. If HM Revenue & Customs think you are a Scottish taxpayer, they will write to let you know. They should be your first point of contact if you have any questions about your tax position.

Do you live mainly in Wales?

Since 6 April 2019 Wales has set its own rates of income tax. However, at present these are the same as those for English taxpayers, as shown above.

The statutory deadline for producing P60 is the 30 May each year. This will give you details of the pension we paid you during the 2025-26 tax year and the tax that was deducted during this period.

As part of our ongoing improvements to member services, we are notifying you of our intention to communicate with you digitally in future. This may be by email or, where the information is sensitive, by providing information to you via our secure Member Self-Service Portal.

Digital communication will allow you to access information quickly and at a time that suits you. It will also reduce our impact on the environment and help us to manage increasing postage costs.

The switch to digital communication will not happen straight away. We are just letting you know our intention and giving you the opportunity to opt-out of digital communication if you wish to.

If you are happy for us to communicate with you digitally in future you must provide us with your email address, if you have not already done so.

We suggest you do this by registering for the Member Self-Service Portal, which can be found at: https://mypensions.southwarkpensions.co.uk/

If you would like to continue to receive information by post, you may request in writing to the following address that information or documents are not given by means of an electronic communication.

Southwark Pension Services

Southwark Pension Fund

PO Box 7606

WS10 1EJ

We will be in touch again as our plans progress.

If you have a question about your pension

Please contact Southwark Pension Services.

Opening hours 9am to 5pm

Email: lbspensions@southwark.gov.uk

Phone: 020 7525 4924

Write to: Southwark Pension Services

Southwark Pension Fund

PO Box 7606

WS10 1EJ

Website: www.southwarkpensions.co.uk

For enquiries regarding your payments

Please email: pensionspayroll@southwark.gov.uk

If you have a question about tax or your

tax code

Please contact your tax office.

Write to: LP Lothians TSO 846 (HMRC)

Grayfield House

5 Bankhead Avenue

Edinburgh EH11 4AE

When you write, please remember to include your:

• tax reference number 846;

• Pay As You Earn (PAYE) reference number LLB8A; and

• National Insurance number.