PPF publishes consultation on 2026/27 levy

The Pension Protection Fund has published its consultation on its plans for the 2026/27 levy, setting out its intention to maintain a zero levy for the UK’s approximately 5,000 conventional DB schemes. The consultation closes on January 5, 2026.

The PPF is required to publish its determination confirming its levy estimate and rules by the end of the current financial year. Retaining a zero levy for the next year is dependent on the passage of the levy measures in the Pension Schemes Bill, which is currently at the Report Stage in the House of Commons.  

However, if sufficient certainty is not achieved within this timeframe, the PPF has set out a fallback option for the conventional levy, which would entail using last year’s levy estimate and rules. The PPF confirmed that this would include the provision enabling it to recalculate the levy back to zero for 2026/27, provided the levy measures in the Bill remain appropriate and progress sufficiently through the remaining stages. 

The consultation also confirms the PPF’s intent to continue to charge an Alternative Covenant Schemes levy, as these schemes pose different risks to conventional schemes. Alternative Covenant Schemes are schemes where the traditional financial support from a single, ongoing sponsoring employer is replaced by or supplemented with other forms of capital or governance structures.