UK Pensions: What’s new this week? January 19, 2026

Timing updates: pensions commission report and lump sums for individuals with enhanced protection

The pensions minister has confirmed that the Pensions Commission is expected to publish its final report in the first half of 2027 (previously, the timeframe had been "in 2027"). The Commission was launched in July 2025 and will make recommendations to improve pensions adequacy and retirement outcomes.

In another response to Parliamentary questions, the pensions minister announced that the Pensions (Abolition of Lifetime Allowance Charge etc) Regulations will be made in spring 2026 and will include updates to the treatment of scheme-specific lump sums for individuals with enhanced protection. The majority of the regulations will have retrospective effect from April 6, 2024, when the lifetime allowance was abolished. This follows HMRC’s announcement on these changes in Pension Schemes Newsletter 173.

Read the responses to Parliamentary questions on the Pensions Commission and lifetime allowance regulations.

Latest GMP increase order published

The latest draft Guaranteed Minimum Pensions Increase Order has been published. The Order is due to come into force on April 6, 2026 and specifies 3% as the rate by which GMPs in payment attributable to earnings factors for the tax years 1988/89 to 1996/97 must be increased.

Read the draft GMP Increase Order.

Employment Rights Act and family leave changes

Regulations have been made bringing parts of the Employment Rights Act 2025 (ERA) into force with effect from various dates. Some of the provisions being brought into force which may be relevant to pensions include:

• new limits on "fire and rehire", including where this is linked with a variation of any term or condition relating to pensions; regulations are needed before we have the full detail of this change
• removal of the qualifying period of employment for entitlement to parental leave and paternity leave; and changes to the entitlement to take paternity leave following shared parental leave. The paternity leave changes come into effect from February 18, 2026 where the child’s mother or adopter has died; otherwise these provisions come into effect from April 6, 2026.

Related to the above, draft legislation has been published which would introduce a new statutory leave entitlement: bereaved partner’s paternity leave, from April 6, 2026. This will be an extended form of unpaid paternity leave of up to 52 weeks following a child’s birth or adoption, available to the father of a child or the partner of a child’s mother or primary caregiver, where the child’s mother or primary caregiver dies.

We expect the changes relating to parental and paternity leave to flow through automatically in most scheme rules but schemes and employers should make sure family leave policies and procedures reflect these updates.

Read the ERA commencement regulations and draft Bereaved Partner’s Paternity Leave Regulations. For more on the Employment Rights Act, see our blog.