Consultation outcome

Public service pensions: cost control mechanism consultation

This was published under the 2019 to 2022 Johnson Conservative government
This consultation has concluded

Read the full outcome

Detail of outcome

This consultation has concluded. The government will implement the three proposed reforms within the consultation when parliamentary time allows.

Consultation Response

  • The government is grateful for the 61 responses it received from members of the public and organisations including trade unions, Scheme Advisory Boards, employers, administrators and other member representative bodies, covering all the affected public service pension schemes. Government officials also held a number of engagement sessions with stakeholders during the consultation period.
  • Having considered the responses, the government will proceed with all three reforms. This approach will mean that:

    • The cost control mechanism will adopt a reformed scheme only design: to remove any allowance for legacy schemes in the mechanism so it only considers past and future service in the reformed schemes;
    • The cost corridor will be widened: from +/-2% to +/-3% of pensionable pay;
    • An economic check will be introduced: linked to expected long-term GDP so that a breach of the mechanism (and therefore benefit changes) would only be implemented if it would still have occurred had long-term economic assumptions been considered.
  • The consultation response document published on this page provides further analysis of the responses received and in-depth responses to any concerns raised by stakeholders. The response also addresses points raised by respondents regarding equalities impacts, including intergenerational unfairness and gender inequalities.

Original consultation


This consultation sets out the government’s proposed changes to the cost control mechanism, following a review by the Government Actuary.

This consultation ran from

Consultation description

At the request of HM Treasury, the Government Actuary carried out a review of the cost control mechanism in the public service pension schemes. His final report has been published and sets out his assessment of the current mechanism and recommendations on possible changes. The Government has considered the Government Actuary’s recommendations and is now launching this consultation to seek views on three changes to the mechanism, all of which are recommendations by the Government Actuary. The government believes that these changes will establish a fairer balance of risks between taxpayers and scheme members, and create a more stable mechanism.


Cost control mechanism consultation: Proposal to reform the mechanism

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Updates to this page

Published 24 June 2021
Last updated 4 October 2021 + show all updates
  1. Added: consultation response/outcome

  2. First published.

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