Source · Select Committees · Work and Pensions Committee
Recommendation 19
19
Acknowledged
Paragraph: 139
Give the PPF more flexibility in setting its levy rates
Recommendation
The Government should find an early legislative opportunity to give the PPF more flexibility in how it sets the levy, allowing it to reduce it to zero and then increase it again if necessary.
Government Response Summary
The government announced it will consider giving the Board of the PPF greater flexibility to adjust the annual pension protection levy, aiming to reduce costs for levy payers, but did not commit to specific legislative action or a timeline.
Paragraph Reference:
139
Government Response
Acknowledged
HM Government
Acknowledged
The PPF is now in a strong financial position, with a reserve fund of more than £13 billion. Clearly the PPF should not have to charge a levy when it is not required. Currently restrictions in the legislation prevent the PPF Board from significantly raising the levy beyond 25% of what it collected the previous financial year. This has been a barrier to the PPF board reducing the levy. That is why the Government announced on 30 January that it will consider giving the Board of the PPF greater flexibility to adjust the annual pension protection levy it collects from private sector occupational DB pension schemes. This will reduce costs for levy payers who have helped to fund the PPF over the years. Giving the Board of the PPF greater flexibility to adjust the pension protection levy will help to unlock millions of pounds for schemes, enabling employers to invest in their business and grow the economy.