The Occupational and Personal Pension Schemes (General Levy) Regulations review 2026
Published 14 July 2026
Applies to England, Scotland and Wales
© Crown copyright 2026
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Ministerial foreword
This is a significant period of change and growth in the pensions system, with reforms and market developments offering the prospect of better outcomes for savers. But as we move towards fewer, larger scheme, so does the importance of strong regulation, clear information and guidance, and effective support to resolve disputes, underpinning confidence in the system.
This consultation sets out proposals to reform the General Levy (the levy), which funds the system of regulation, oversight, and protection for the UK’s private pensions market.
Our 2026 review of the levy has identified a structural funding gap. Levy income has not kept pace with the cost of these functions, leading to persistent annual deficits and a growing levy debt. At the same time, the pensions landscape is changing quickly. Consolidation, the continued shift to defined contribution provision, and reforms under the Pension Schemes Act 2026 are increasing both the scale and complexity of what the system needs to deliver.
The government’s proposed approach to addressing the funding gap reflects real trade-offs between how quickly to address levy debt, how costs are distributed across the sector, and the impacts on schemes and employers.
We recognise that levy changes have real-world implications. Our aim is a transparent approach and a stable framework within which schemes and employers can plan. In return, levy-funded bodies must continue to drive efficiency and demonstrate clear value for money.
We are also looking ahead. This consultation seeks views on the longer-term future of the levy, to ensure it evolves with the pensions market and continues to support effective regulation and member protection.
We encourage all interested parties to respond and welcome your views on these proposals. Your responses will inform final decisions and the secondary legislation needed to implement changes from April 2027.
Torsten Bell MP,
Minister for Pensions.
About this consultation
Purpose
This consultation sets out proposed changes to the structure and rates of the General Levy on occupational and personal pension schemes for the period from April 2027 to March 2030. We are seeking views to help ensure the levy remains fair, sustainable, and aligned with the changing pensions landscape.
1. The consultation will run for 8 weeks from the 14 July 2026 to midday on 8 September 2026.
Who this consultation is aimed at
2. This consultation is primarily aimed at those who pay or are otherwise affected by the General Levy, including trustees of occupational pension schemes, sponsoring employers, personal pension providers, and pensions industry bodies. However, the government welcomes responses from all interested parties.
Scope
3. This consultation applies to Great Britain as pensions are a reserved matter for Scotland and Wales.
4. Occupational pensions are a devolved matter for Northern Ireland. It is anticipated that Northern Ireland will make corresponding legislation.
How to respond to this consultation
5. Please send your consultation responses via email to the General Levy Consultation Team at the shared email address:
CaxtonHouse.DWPGeneralLevy2026@dwp.gov.uk
Government response
6. This consultation is linked to a statutory instrument. The government response will therefore be published on GOV.UK before, or at the same time as, the instrument is laid.
How we consult
Consultation principles
7. This consultation is being conducted in accordance with the Cabinet Office consultation principles published in March 2018, which provide clear guidance to government departments on best practices for public consultations.
Feedback on the consultation process
8. We value your feedback on how this consultation has been conducted. If you have any comments about the consultation process itself (rather than the content), including concerns about adherence to the consultation principles or any improvements to the process, please contact:
DWP Consultation Coordinator
Legislative Strategy Team
4th Floor
Caxton House
Tothill Street
London
SW1H 9NA
Email: CAXTONHOUSE.LEGISLATION@DWP.GOV.UK
Data protection and confidentiality
9. All responses will be published, except where the respondent is an individual acting in a private capacity (such as a member of the public). All responses from organisations and individuals acting in a professional capacity will be published in full, with email addresses and telephone numbers removed.
10. For more information on how we handle personal data, please refer to the DWP Personal Information Charter.
Chapter 1 – background
11. The General Levy (the levy) is a collective funding mechanism that underpins the regulation, protection, and integrity of the Great Britain private pensions system, ensuring that the industry supports the infrastructure on which it depends.
12. The levy recovers the funding provided by the Department for Work and Pensions (DWP) for The Pensions Ombudsman (TPO), the core regulatory activities[footnote 1] of The Pensions Regulator (TPR), and the pensions-related functions (excluding Pension Wise) of the Money and Pensions Service (MaPS). All 3 bodies receive grant-in-aid from DWP, which is recovered from levy income. In this document, the 3 bodies are referred to collectively as ‘the levy-funded bodies.’
13. The levy is paid by eligible registrable occupational and personal pension schemes. The amount of levy each scheme pays is determined by the type of scheme and the number of members it has on the ‘reference day’. The reference day for a scheme is generally the last day of the scheme year which ended before the beginning of the previous financial year. The levy is collected annually by TPR on behalf of the Secretary of State for Work and Pensions.
14. The levy rates are set out in the Occupational and Personal Pension Schemes (General Levy) Regulations 2005 (S.I. 2005/626), as amended.
15. The levy is reviewed regularly by DWP. Each review considers:
- whether the structure of the levy remains appropriate
- forecast levy receipts including from charges or penalties as outlined in section 175(3)(a) of the Pension Schemes Act 1993
- any accumulated levy surplus or debt
- the agreed strategies and spending plans of the levy-funded bodies
16. Until March 2021, the levy structure comprised 2 rate categories: occupational pension schemes and personal pension schemes. Following a public consultation in 2020, changes to the levy structure were implemented from April 2021. These changes introduced 4 distinct rate categories for defined benefit (DB) and hybrid schemes, defined contribution (DC) schemes (excluding master trusts), master trusts, and personal pension schemes. The new structure preserved the simplicity and operational efficiency of the per-member approach whilst reflecting the changing pensions landscape, and the demands placed on the levy-funded bodies at the time.
17. This consultation sets out the findings of the latest levy review and proposals for levy structure and rates for the period April 2027 to March 2030 and beyond, should no further changes be brought forward in the meantime. The case for wider structural reform of the levy will be considered separately, in consultation with the industry.
Chapter 2 – the evolving pensions landscape
18. Since the current levy structure was introduced in 2021, the pensions landscape has continued to evolve. This section explains how the government is actively reforming the pensions system and what that means for the levy. New legislation, larger pension schemes and a growing focus on value and oversight are changing the demands placed on the levy-funded bodies. The levy needs to keep pace with those changes.
19. Workplace pensions account for around £2 trillion in assets and, since the introduction of automatic enrolment, more than 23 million people are now saving into a workplace pension. While this has driven significant growth in DC schemes and master trust arrangements, DB schemes continue to play an important role.
20. DB schemes provide a secure retirement income for 9 million people across around 5,000 schemes[footnote 2]. Overall DB scheme funding has significantly improved with latest estimates showing around one-third of schemes funded at buy-out levels[footnote 3]. This means schemes are more likely to meet long-term funding targets, reducing the need for regulatory intervention. Greater numbers of schemes are also leaving the DB market into insurers (200 to 300 schemes entering the buy-in/out market each year[footnote 4]).
21. The DC landscape has also been evolving. TPR research shows that, while the number of small DC trust-based schemes has decreased, DC trust-based scheme membership reached 30.6 million in 2024.[footnote 5] Master trusts provide for most DC trust members, holding 28 million memberships and £166 billion of assets.
22. Latest DWP projections indicate that assets under management in DC schemes, including master trusts, are expected to exceed assets under management in DB schemes for the first time in 2030[footnote 6]. This marks an important shift in the balance of the private pensions market and underlines why the levy framework needs to reflect the growing scale, concentration and regulatory significance of DC schemes and master trusts.
23. Alongside this, personal pension schemes remain a significant part of the wider private pensions market and are also subject to the levy, strengthening the case for a levy framework that reflects the scale, concentration, and regulatory significance of different forms of pension provision.
24. As the market evolves, government reforms - culminating in the Pension Schemes Act 2026 (the 2026 Act) - seek to strengthen scheme sustainability, improve value for savers, and support productive investment. Alongside this, there is an increasing focus on managing regulatory and systemic risk, not only at individual scheme level but also where risks may affect the wider financial system.
25. The Pensions Investment Review: Final Report (May 2025) set out the government’s priorities for private pensions, including significant consolidation of DC schemes and the Local Government Pension Scheme (LGPS) to enable greater investment in productive assets and improve returns for members. These reforms are intended to reduce fragmentation, improve efficiency, and facilitate larger-scale investment strategies.
26. The government’s broader Workplace Pensions roadmap reinforces this vision, setting out a clear timeline for the transition towards a more consolidated, value-driven system, with stronger governance expectations and investment capability aligned to long-term outcomes.
27. Over the next decade, the market is expected to consolidate significantly, with a smaller number of larger schemes. Government policy and legislative reforms aim to support the emergence of large-scale DC arrangements (often described as “megafunds”), with minimum scale expectations of £25 billion in assets by 2030 for default funds. This transition is intended to unlock economies of scale, improve member outcomes, and enable broader investment opportunities, including illiquid and productive assets. These changes will require improved data collection and analysis, and enhanced regulatory capability to monitor and respond to systemic risks.
28. These changes will also facilitate pension scheme participation in wider growth initiatives, including investment aligned with UK economic priorities (for example, infrastructure and growth capital), supported by complementary initiatives such as the National Wealth Fund.
29. The 2026 Act represents the most significant legislative reform in a generation. It introduces a comprehensive package of measures to ensure consistent standards and outcomes across the whole pensions market, including:
-
DB reforms:
- a permanent legislative framework for DB superfunds
- greater flexibility for well-funded schemes to distribute surplus to employers and/or members, subject to safeguards (including actuarial certification and member protections)
-
DC reforms:
- introduction of a statutory Value for Money (VfM) framework, the central pillar of the reform framework
- measures to drive scale and consolidation, including the development of DC megafunds and solutions to address the growing challenge of small pension pots
- requirements for schemes to provide default retirement solutions (“guided retirement”) to support members in decumulation
- System-wide measures:
- a system for the automatic consolidation of small, deferred pension pots
- powers to improve transparency, reduce costs, and enhance investment performance
30. These reforms will be implemented on a phased basis over the remainder of the decade, with key elements such as the Value for Money framework, scale requirements and default retirement solutions introduced in stages to manage market impacts and support an orderly transition.
31. Collective Defined Contribution (CDC) schemes pool investment and longevity risk, offering the potential for more stable, trustee-managed retirement incomes without requiring individual members to make complex decumulation decisions. Legislation introduced in October to December 2025 has expanded the legal framework for CDC schemes, allowing multiple unconnected employers to participate. This marks a significant step beyond the previous model, which was restricted to single or connected employers and raises questions about the appropriate levy applicable to these new schemes which may be standalone or a section of another multi-employer scheme.
32. These reforms are not cost-neutral. They require the levy-funded bodies to take on new responsibilities, including authorisation, supervision, compliance monitoring, and enforcement in areas such as CDC schemes, default retirement solutions, and value for money assessments. They increase the scale of data collection, analysis, and market oversight required to manage systemic risks in a more consolidated system. They also increase the requirement for member-facing support.
33. DWP, the Financial Conduct Authority (FCA), and TPR are developing a joint VfM framework. The latest consultation (July 2026) sets out a more transparent, standardised, and comparative approach to assessing value, incorporating investment performance, costs, and service quality, and introducing a ratings-based system to drive competition and consolidation where schemes underperform.
34. The detailed design and sequencing of these reforms to the pensions landscape continue to evolve. With greater consolidation, new scheme models, and heightened expectations on value and governance, the levy framework must adapt accordingly. This will ensure that levy-funded bodies are appropriately resourced to maintain effective oversight, manage systemic risks, and support improved outcomes for pension savers.
Chapter 3 – levy funding position
The levy funding challenge
35. The levy is intended to ensure that the pensions industry, rather than general taxpayers, meets the costs of the framework that underpins the pensions system and supports confidence in it.
36. However, in practice, since 2018 to 2019 levy income has not kept pace with the costs of the levy-funded bodies, and levy debt has grown as expenditure pressures have increased. Measures intended to address this, in April 2019 and April 2020, were deferred because of the EU exit and the COVID-19 pandemic respectively. The government’s aim is therefore to restore sustainability in a way that is fair, proportionate, and manageable for pension schemes.
37. From April 2021, a new levy structure and annual rate increases were introduced with the aim of covering in-year expenditure and reducing the levy debt by 2030 to 2031. However, high inflation and increased demands on the levy-funded bodies have placed further pressure on the funding position. Despite higher levy rates and efficiency measures, levy debt had reached £154 million by March 2026 and is expected to continue increasing without further action. This accumulated levy debt is held on DWP’s balance sheet and reflects the cumulative difference between levy income and expenditure over time.
Scope of forecasting
38. The proposals in this consultation cover April 2027 to March 2030 and are based on current forecasts of levy income, expenditure, and relevant policy impacts. Expenditure forecasts assume inflation-based increases across the levy-funded bodies, with only a small number of additional cost pressures included under current planning assumptions. Forecasts may change as policy development progresses, particularly once the final design of the small pots solution is settled. Although longer-term projections have informed planning, this consultation focuses on the period to 2029 to 2030.
Chapter 4 – restoring levy sustainability
39. The government has decided that the levy must be placed on a more sustainable footing, reflecting the changing pensions landscape, forecast expenditure, and the reforms already being taken forward across the pensions system. In developing the proposed approach for the period April 2027 to March 2030, the government has weighed a range of options and the issues they raise, including the pace at which levy debt should be addressed, the affordability of increases for levy payers, the distribution of costs between scheme types, and the need to maintain effective funding for the levy-funded bodies.
40. Maintaining the 6.5% annual increase that has been in place for the last 3 years would not enable the levy to keep pace with the rising costs of the pension’s system. Although this approach would provide continuity for levy payers, forecasts indicate that it would not generate sufficient income to meet expected expenditure or prevent further growth in the accumulated levy debt. It would also risk leaving the levy framework misaligned with the direction of pension policy, particularly as consolidation, new scheme models, and higher expectations of regulation and member support increase the demands placed on levy-funded bodies.
41. Eliminating the levy debt by 2030 to 2031, as previously planned, would require substantial increases in levy rates over a relatively short period. This would place significant additional pressure on pension schemes and, in some cases, sponsoring employers at a time when the sector is already adapting to wider legislative and market reforms.
42. The government therefore proposes to extend the recovery period. This would allow for a more gradual increase in levy rates, support a more manageable profile for levy payers, and reduce the risk of short-term cost pressures undermining the broader objectives of reform. It also recognises that restoring sustainability is not simply a question of recovering debt quickly, but of establishing a levy path that is credible, proportionate, and capable of supporting the functions of the levy-funded bodies over the longer term.
43. The government has considered whether existing differences in levy rates between scheme types remain appropriate. As consolidation leads to fewer, larger DC schemes and master trusts, with growing shares of membership and assets, the distribution of levy costs becomes more significant. This strengthens the case for reviewing whether the current approach reflects the structure of the market and supports a fair and sustainable sharing of costs.
44. Similar considerations apply to personal pension schemes, which remain a significant levy-paying category and form part of the wider shift towards DC and personal pension provision. Including personal pension schemes within the phased move towards closer alignment helps ensure the proposed approach reflects the breadth of the modern private pensions market, rather than focusing only on occupational DC schemes and master trusts. We also need to consider the approach for new Unconnected Multi-Employer CDC schemes as they enter the market and require regulatory oversight.
45. These considerations have informed the government’s assessment of which approach is most suitable to take forward. The government has taken account of how different options would affect levy sustainability, affordability for levy payers, fairness between scheme types, and the overall funding position. The government has concluded that the proposed approach should balance the need to restore the levy to a sustainable footing with the need to avoid sharp short-term increases for schemes and employers.
The proposed option: baseline increases with phased equalisation
What the option does
46. This option applies an increase of 5% per year 3-year period from 2027 to 2028 for DB schemes:
- DC schemes (excluding master trusts) would see an increase of 6.2% per year, reflecting a gradual move towards parity with DB schemes
- master trust and personal pension schemes would see increases of 9% per year, reflecting a faster transition towards alignment with DB rates
47. This approach maintains the current levy structure while introducing a clear and transparent pathway towards a more consistent distribution of costs across scheme types.
48. The government’s proposed approach is to place the levy on a sustainable footing through a phased programme of rate adjustments, including the gradual equalisation of DC, master trust, and personal pension scheme rates towards those paid by DB and hybrid schemes. This reflects the changing nature of the pensions landscape, with increasing regulatory focus on DC and personal pension provision and ensures that levy contributions more accurately align with where regulatory effort is concentrated. Alongside this, modest and predictable annual increases would be applied to provide stability for schemes while supporting the long-term financial sustainability of the levy.
Why this is the proposed option
49. This option provides a balanced approach to restoring levy sustainability while managing impacts on schemes. It sets a clear route to balancing levy income and expenditure before beginning to reduce levy debt; ensures all schemes contribute through a consistent baseline increase; introduces additional increases for DC, master trust and personal pension schemes to support a fairer distribution of costs over time; and phases changes to avoid sharp, one-off increases.
50. Under this approach, the levy is projected to return to in-year surplus over the medium term, reaching a positive position of around £3.3 million by 2033 to 2034. This marks a turning point from debt accumulation to active repayment, enabling the department to begin reducing the debt on its balance sheet over time. The trajectory has been designed to balance affordability for schemes with the need to restore fiscal sustainability, avoiding sharp increases while still delivering a clear path to recovery.
51. The preferred option also maintains a clear objective of stabilising the accumulated levy debt by 2035 to 2036. Beyond 2035 to 2036, modelling indicates a continued downward trajectory in the level of outstanding debt, as annual surpluses are sustained and applied to reduce the residual balance. This provides a durable framework for the levy, ensuring that it can continue to fund essential regulatory, guidance, and redress functions while maintaining confidence that the system is financially sustainable over the longer term.
Indicative impact on levy payers
52. The proposed option results in moderate increases for DB and hybrid schemes, reflecting the baseline uplift, while higher increases for DC schemes, master trusts and personal pension schemes reflect the additional equalisation component. This reflects the evolving nature of the pensions landscape. As regulatory focus increasingly shifts towards DC and personal pension provision—particularly large master trusts—the associated supervision, data, and enforcement requirements are also increasing. By contrast, DB and hybrid schemes are generally more mature, with regulatory demands evolving differently over time.
- DB schemes: revenue rises by around 12% by 2029 to 2030
- DC schemes (excluding master trusts): revenue rises by around 3% over the same period
- master trusts: revenue rises by around 67% by 2029 to 2030, reflecting faster alignment
- personal pensions: revenue rises by around 29% by 2029 to 2030
Indicative impact on the levy account
53. Under the proposed option, the levy account is projected to return to an in-year surplus by 2033 to 2034 (around £3 million). At the same time, projections show levy debt initially rising before beginning to reduce.
Chapter 5 – government approach
54. The government proposes to proceed with the phased equalisation approach outlined above. This provides a balanced and sustainable path, combining a consistent baseline increase with a gradual move towards a fairer distribution of costs across scheme types, while addressing levy debt over time.
55. Whilst the projected financial impact of this has been modelled through to 2035 to 2036, we recognise that several external factors, such as the projected growth in DC scheme membership and ongoing scheme consolidation, may influence these projections over time. We will therefore continue to review and adjust any estimates as part of our ongoing review process.
56. It is the intention that legislation will allow for the levy rates for 2029 to 2030 to be continued beyond March 2030, should no further rate changes be made in legislation. This will ensure that the levy-funded bodies can continue to be financially supported in the event of any delay in new legislation.
57. We estimate that if levy rates were to remain unchanged, levy debt would exceed £260 million by 2031. In contrast, the proposed changes aim to balance levy income and expenditure over the long term. By taking a longer-term approach, this reduces the need for sharper, more immediate increases and helps to ease short-term pressures on schemes whilst ensuring that the levy-funded bodies continue to have sufficient resources to deliver their functions in the developing pension landscape.
58. The government expects levy-funded bodies to continue to drive efficiency and demonstrate value for money, including by managing cost pressures and improving the effectiveness of regulatory activity. Sustained confidence in the levy framework depends not only on adequate funding, but also on the efficient use of resources.
59. Looking beyond the immediate rate-setting period, we are also seeking to gather information on potential longer-term reform of the levy. We are interested in exploring whether there are more effective, proportionate, or sustainable approaches to levy structure that better reflect the evolving pensions landscape whilst meeting the costs of the levy-funded bodies. This includes considering how the levy should operate in a more consolidated market, where a smaller number of large-scale schemes - including emerging DC megafunds - account for a significant proportion of assets and memberships.
60. The structure of the levy has remained broadly unchanged for over 3 decades. While rates, thresholds, and scope have been adjusted incrementally to respond to emerging pressures, the underlying design and funding model are now approaching 36 years old.
61. While this longevity has provided continuity, it also raises questions about whether a levy framework conceived for a very different pensions landscape remains fit for purpose today. The scale, complexity and diversity of the modern pensions market - alongside increased expectations of regulation, guidance and consumer protection - suggest that the time is right to look more fundamentally at the levy framework, to ensure it is sustainable, proportionate and aligned with the needs of a 21st century system.
62. We therefore intend to undertake a broader review of the levy over the coming years, working closely with the pensions industry and other stakeholders to ensure any future approach reflects how the system now operates in practice.
Consultation questions
We welcome views on the proposed changes to General Levy rates and on the longer-term future of the levy framework. Please answer the questions that are relevant to you. Where possible, provide evidence, examples or estimates to support your response.
Question 1: What impact would the proposed levy changes have on your scheme or organisation? Please explain any financial, operational, administrative, or strategic impacts, and provide evidence or estimates where available.
Question 2: What practical barriers, if any, would your scheme or organisation face in implementing the proposed levy changes? Please explain whether these are operational, technical, financial, or timing-related.
Question 3: Do you agree with the proposed differences in levy increases between DB and hybrid schemes, DC schemes, master trusts, and personal pension schemes? Please explain your answer, including any evidence on whether the proposed distribution of costs is fair and proportionate.
Question 4: Do you agree with the proposed balance between affordability for levy payers and the pace of levy debt reduction? If not, please explain what balance you would prefer and why.
Question 5: What principles should guide the future design of the levy beyond 2030? Please include any views on alternative charging approaches, scheme categories, thresholds, or other structural changes.
Question 6: What information or measures would help you better understand how levy funding is used and support confidence that levy-funded bodies are delivering value for money? Please provide examples where possible
Next steps
Following this consultation, the government plans to publish its response and lay secondary legislation in early 2027 to change levy rates from April 2027. If the government later proposes further changes to the levy structure or levy rates, it will consult again in line with statutory requirements.
Annex A – levy tables
Levy rates for the government proposal are shown below. Please note that minimum payment on the levy rates have been rounded to the nearest pound. In the absence of new levy regulations, it is proposed that the rates shown for 2029 to 2030 will roll forward.
DB and Hybrid
2027 to 2028
| Membership band | Rate | Minimum payment |
|---|---|---|
| 2 to 11 | £8.04 | £80 |
| 12 to 99 | £8.04 | £0 |
| 100 to 999 | £5.81 | £800 |
| 1,000 to 4,999 | £4.52 | £5,800 |
| 5,000 to 9,999 | £3.43 | £22,570 |
| 10,000 to 499,999 | £2.39 | £34,330 |
| 500,000 plus | £1.82 | £1,197,000 |
2028 to 2029
| Membership band | Rate | Minimum payment |
|---|---|---|
| 2 to 11 | £8.45 | £80 |
| 12 to 99 | £8.45 | £0 |
| 100 to 999 | £6.10 | £840 |
| 1,000 to 4,999 | £4.74 | £6,090 |
| 5,000 to 9,999 | £3.61 | £23,700 |
| 10,000 to 499,999 | £2.51 | £36,050 |
| 500,000 plus | £1.91 | £1,256,850 |
2029 to 2030
| Membership band | Rate | Minimum payment |
|---|---|---|
| 2 to 11 | £8.87 | £90 |
| 12 to 99 | £8.87 | £0 |
| 100 to 999 | £6.40 | £880 |
| 1,000 to 4,999 | £4.98 | £6,400 |
| 5,000 to 9,999 | £3.79 | £24,880 |
| 10,000 to 499,999 | £2.64 | £37,850 |
| 500,000 plus | £2.00 | £1,319,690 |
DC
2027 to 2028
| Membership band | Rate | Minimum payment |
|---|---|---|
| 2 to 11 | £5.54 | £60 |
| 12 to 99 | £5.54 | £0 |
| 100 to 999 | £4.00 | £550 |
| 1,000 to 4,999 | £3.12 | £4,000 |
| 5,000 to 9,999 | £2.37 | £15,600 |
| 10,000 to 499,999 | £1.66 | £23,680 |
| 500,000 plus | £1.25 | £828,030 |
2028 to 2029
| Membership band | Rate | Minimum payment |
|---|---|---|
| 2 to 11 | £5.89 | £60 |
| 12 to 99 | £5.89 | £0 |
| 100 to 999 | £4.25 | £580 |
| 1,000 to 4,999 | £3.31 | £4,250 |
| 5,000 to 9,999 | £2.51 | £16,570 |
| 10,000 to 499,999 | £1.76 | £25,150 |
| 500,000 plus | £1.33 | £879,030 |
2029 to 2030
| Membership band | Rate | Minimum payment |
|---|---|---|
| 2 to 11 | £6.25 | £60 |
| 12 to 99 | £6.25 | £0 |
| 100 to 999 | £4.52 | £620 |
| 1,000 to 4,999 | £3.52 | £4,510 |
| 5,000 to 9,999 | £2.67 | £17,590 |
| 10,000 to 499,999 | £1.87 | £26,710 |
| 500,000 plus | £1.41 | £933,160 |
Master Trusts (MT)
2027 to 2028
| Membership band | Rate | Minimum payment |
|---|---|---|
| 2 to 11 | £4.13 | £40 |
| 12 to 99 | £4.13 | £0 |
| 100 to 999 | £2.99 | £410 |
| 1,000 to 4,999 | £2.33 | £2,980 |
| 5,000 to 9,999 | £1.77 | £11,660 |
| 10,000 to 499,999 | £1.24 | £17,660 |
| 500,000 plus | £0.94 | £620,790 |
2028 to 2029
| Membership band | Rate | Minimum payment |
|---|---|---|
| 2 to 11 | £4.50 | £50 |
| 12 to 99 | £4.50 | £0 |
| 100 to 999 | £3.26 | £450 |
| 1,000 to 4,999 | £2.54 | £3,250 |
| 5,000 to 9,999 | £1.93 | £12,700 |
| 10,000 to 499,999 | £1.35 | £19,250 |
| 500,000 plus | £1.02 | £676,100 |
2029 to 2030
| Membership band | Rate | Minimum payment |
|---|---|---|
| 2 to 11 | £4.91 | £50 |
| 12 to 99 | £4.91 | £0 |
| 100 to 999 | £3.55 | £490 |
| 1,000 to 4,999 | £2.77 | £3,550 |
| 5,000 to 9,999 | £2.10 | £13,840 |
| 10,000 to 499,999 | £1.47 | £20,980 |
| 500,000 plus | £1.11 | £736,340 |
Personal Pensions (PP)
2027 to 2029
| Membership band | Rate | Minimum payment |
|---|---|---|
| 2 to 11 | £1.65 | £20 |
| 12 to 99 | £1.65 | £0 |
| 100 to 999 | £1.16 | £160 |
| 1,000 to 4,999 | £0.99 | £1,150 |
| 5,000 to 9,999 | £0.65 | £4,960 |
| 10,000 to 499,999 | £0.50 | £6,540 |
| 500,000 plus | £0.37 | £250,700 |
2028 to 2029
| Membership band | Rate | Minimum payment |
|---|---|---|
| 2 to 11 | £1.79 | £20 |
| 12 to 99 | £1.79 | £0 |
| 100 to 999 | £1.26 | £180 |
| 1,000 to 4,999 | £1.08 | £1,260 |
| 5,000 to 9,999 | £0.71 | £5,410 |
| 10,000 to 499,999 | £0.55 | £7,130 |
| 500,000 plus | £0.40 | £273,260 |
2029 to 2030
| Membership band | Rate | Minimum payment |
|---|---|---|
| 2 to 11 | £1.96 | £20 |
| 12 to 99 | £1.96 | £0 |
| 100 to 999 | £1.37 | £190 |
| 1,000 to 4,999 | £1.18 | £1,370 |
| 5,000 to 9,999 | £0.78 | £5,890 |
| 10,000 to 499,999 | £0.60 | £7,770 |
| 500,000 plus | £0.44 | £297,860 |
The following table shows revenue forecast by sector under the government’s proposal (2027 to 2028 to 2029 to 2030).
Revenue (£m)
| Scheme type | 2025 to 2026 | 2026 to 2027 | 2027 to 2028 | 2028 to 2029 | 2029 to 2030 |
|---|---|---|---|---|---|
| DB and Hybrid | £60.5 | £64.2 | £66.9 | £69.4 | £71.7 |
| DC (Excluding MTs) | £2.9 | £3.0 | £3.1 | £3.2 | £3.1 |
| Master Trusts | £24.1 | £28.0 | £33.4 | £39.9 | £46.7 |
| Personal Pensions | £10.9 | £11.9 | £13.1 | £14.4 | £15.3 |
| Total | £98.4 | £107.0 | £116.5 | £126.9 | £136.8 |
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Funding for the Automatic Enrolment compliance regime operated by TPR is not recovered by the levy. ↩
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Bulk annuity and longevity hedging – H1 2025 - Hymans Robertson. ↩
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Occupational defined contribution landscape in the UK 2024. ↩
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Pensions 2050: evidence and future priorities – interim report - GOV.UK ↩