PPF Levy Set to Zero - Major Savings for 5,000 UK DB Schemes

The Pension Protection Fund (PPF) has today announced that there will be no PPF levy charged for 2025/26. This decision puts £45 million back into the hands of nearly 5,000 UK defined benefit schemes and their sponsors.

Earlier this year, invoicing was paused to allow the Pension Schemes Bill to progress through Parliament. The Bill includes key measures that give the PPF greater flexibility in setting the levy. With the Bill now making strong headway and broad support across the industry, the PPF Board has recalculated this year’s levy to zero.

This early decision gives trustees and employers clarity and certainty for their financial planning this year. The PPF will consult on levy plans for 2026/27 later this autumn, once the Bill completes its passage.

Minister for Pensions, Torsten Bell, welcomed the move, saying:

“Rigid rules currently leave pension schemes paying millions into the Pension Protection Fund even when extra funding is not required. The Pension Schemes Bill will sweep away those constraints. This will support better funded pension schemes and greater investment by firms.”

Kate Jones, PPF Chair, added:

“I’m pleased that we’re able to save DB schemes £45m this year. The legislative changes we’ve needed to further reduce the levy have made good progress, giving us the confidence to act decisively for this year’s levy. As we reach this significant milestone on our journey to financial self-sufficiency, we recognise the invaluable contribution levy payers have made over the past 20 years. We couldn’t have delivered the protection and peace of mind to members without them.”