Recommendation 8

HM Treasury has since been developing a remedy for those affected.14 In February 2021, HM Treasury announced that it plans to give the 3 million members affected by the McCloud judgment a choice of which scheme they would like their service between April 2015 and March 2022 to count towards. The affected members will make this choice at the time their pension becomes payable, which means putting things right will take decades to resolve fully.15 HM Treasury estimates the cost of the remedy to be around £17 billion (excluding the cost of the additional administration). HM Treasury told us that it is ultimately members who will pay these costs, and this process will be managed through the cost control mechanism (see below).16 HM Treasury said it was now working 8 Qq 2, 3; C&AG’s Report, para 4, 5 9 Qq 2, 3 10 Qq 19–22 11 HM Treasury (Catherine Little) letter to the Committee, 12 May 2021 12 Qq 64–67; C&AG’s Report, para 3.2 13 C&AG’s Report, para 16 14 Qq 64, 67–72 15 Qq 67, 83 16 Qq 71, 72 10 Public Sector Pensions very closely with schemes to understand what the administration of the McCloud remedy is likely to cost, and it will consider how best to support schemes in the next spending review.17