Source · Select Committees · Work and Pensions Committee
Recommendation 13
13
Deferred
Paragraph: 108
Set a date for mandatory accreditation of professional pension trustees
Conclusion
Despite strong support from TPR and trustee bodies for accreditation as a way to improve governance standards, they can only encourage it. DWP should set a date by which it intends to make accreditation mandatory for professional trustees.
Government Response Summary
The government did not set a date for mandatory accreditation, instead stating that voluntary accreditation is prevalent and it intends to consult on the framework of accreditation and governance later this year.
Paragraph Reference:
108
Government Response
Deferred
HM Government
Deferred
There is already much good practice on voluntary accreditation with significant numbers of professional trustees17 choosing to become accredited. In a 2023 TPR survey 74% of professional trustees reported they held, or were working towards, trustee accreditation.18 Stakeholder responses to the 2023 call for evidence on trustee skills, capability and culture19 were broadly supportive of mandatory accreditation for professional trustees. The previous Government’s response to the call for evidence strongly encouraged voluntary accreditation, while TPR’s new General Code of Practice, which came into force on 28 March 2024, included an expectation that anyone acting as a professional trustee should be accredited. TPR is restructuring its supervisory approach to facilitate more direct engagement with trustees on an expert-to-expert basis. The goal is to check and challenge the quality of decision-making across the market in a way 16 TPR Press release of 2nd April 2025 https://www.thepensionsregulator.gov.uk/en/media- hub/press-releases/2025-press-releases/tpr-extends-its-oversight-to-professional- trustee-firms#:~:text=TPR%20found%20a%20variety%20of,influence%20better%20 outcomes%20for%20savers 17 Definition of a professional trustee https://www.thepensionsregulator.gov.uk/en/trustees/professional-pension-trustee- standards#:~:text=We%20consider%20a%20professional%20trustee,than%20just%20 in%20certain%20areas). 18 https://www.thepensionsregulator.gov.uk/-/media/thepensionsregulator/files/import/ pdf/trustee-diversity-and-inclusion-survey-2023.ashx 19 https://www.gov.uk/government/calls-for-evidence/pension-trustee-skills-capability- and-culture-a-call-for-evidence that is tailored to the specific circumstances of individual schemes. TPR’s work will help to understand whether current accreditation arrangements are robust enough. We intend to consult on the framework of accreditation and governance in our public consultation later this year.