UK pension industry bodies in September 2026 urged the government to overhaul the General Levy framework before pushing through proposed increases, warning the changes could unfairly burden large schemes and undermine consolidation goals.

Responding to the DWP’s consultation on the Occupational and Personal Pension Schemes General Levy Regulations Review 2026, Pensions UK acknowledged the need to address the levy deficit funding bodies such as The Pensions Regulator, the Money and Pensions Service and The Pensions Ombudsman. But it argued the per-member charging structure disproportionately hits large defined contribution schemes with smaller pots, potentially distorting value-for-money assessments for mass-market master trusts even where costs don’t reflect inefficiency. The group called for a full structural review and proposed capping individual levy liabilities from 2027 as an interim step.

TISA echoed calls for stronger evidence behind proposed increases, particularly for master trusts and personal pensions, and flagged concerns over the April 2027 implementation timetable, urging phased rollout to give firms time to adjust budgets.

People’s Partnership went further, noting that two schemes now pay nearly 20% of the total levy—a figure it called disconnected from actual regulatory costs. It suggested the FCA’s income-based levy model as a fairer alternative to the current per-member approach.

With consolidation and value-for-money reforms central to UK pension policy, how the DWP responds to these calls could shape scheme economics well beyond 2027.