Pensions - Articles - PPF welcomes government signal on levy changes

 Kate Jones, PPF Chair, said: “We warmly welcome the government’s intent to give us greater flexibility to reduce the levy. Levy payers have long made a vital contribution to the PPF’s funding. We ultimately don’t want to charge levy payers any more than we need. This positive announcement is an important step towards that end goal.”

 Since its last update in December, the PPF has worked closely with colleagues in government. This has informed the PPF’s approach to finalising its plans for the 2025/26 levy. The PPF Board has acted to more than halve its levy estimate for 2025/26 to £45m. This is a significant reduction on the £100m estimate initially proposed and would be its lowest ever levy. Almost all schemes – 99.7 per cent – would be expected to see a reduction in levy next year.

 In addition, the PPF has included a new provision in its levy rules that would enable the Board to calculate a zero levy if appropriate changes that would give the PPF greater flexibility in setting the levy are brought forward, and sufficiently progressed, in the course of 2025/26.

 Kate Jones, PPF Chair, commented: “On the back of our positive engagement with government, and based on our current risks, we’ve moved to reduce costs for levy payers and support sponsoring businesses. Importantly, we’ve also ensured we have the flexibility to review our approach if sufficient progress can be made on the changes we need.”

 The PPF recognises the vital importance of balancing both levy payer and member interests.

 Kate Jones added: “In addition to changes on levy, we’d welcome further government consideration of PPF and FAS indexation rules. We will continue to work constructively with DWP in the interests of all our stakeholders.”