UK Pensions Headlines: October 2023

DWP consults on proposals to amend the General Pension Scheme Levy

On 2 October, the Government published a consultation on its Occupational and Personal Pension Schemes (General Levy) Regulations review.

Building on the consultation it carried out in 2020, to recover by 2030-31 what was then a near £80m deficit, the Government now considers options for further change. It cites that, “without further intervention, the levy is expected to be operating with an accumulated deficit of over £200m” by 2030-31. The proposals cover the payments due in levy years 2024-25 to 2026-27.

Unusually, in light of the expected increase in the prospective deficit, the first option is for no change although this is quickly dismissed. Option 2 is a proposed increase of 6.5% per year across the board which, despite being significantly below recent inflation statistics and previous levy increases, is viewed as a significant increase that doesn't support the Government's