UK Pensions: What’s new this week? March 23, 2026

Finance Act receives Royal Assent

The Finance (No.2) Bill 2026 has received Royal Assent, becoming the Finance Act 2026. The Act includes provisions bringing most pension benefits into the scope of inheritance tax from April 6, 2027. This will require significant changes for pension schemes, including new processes for calculating relevant benefits, communicating with personal representatives and withholding payment of benefits and paying tax directly where this is requested under the new framework. Further HMRC guidance is expected; schemes should start to plan for these changes.

The Act also includes provisions to facilitate unconnected, multi-employer collective defined contribution (CDC) schemes and changes in relation to the abolition of the lifetime allowance charge.

Read the Finance Act 2026.

TPR statistics on DC landscape

The Pensions Regulator (TPR) has published its annual statistical report on the occupational defined contribution (DC) landscape in the UK, providing an overview of schemes, memberships and assets as at December 31, 2025.

The report shows continued consolidation in the market. The number of DC schemes fell by 15% over the year, from 920 schemes in 2024 to 790 in 2025 (excluding hybrid and micro schemes). This reduction is concentrated in schemes with fewer than 5,000 members; the number of larger schemes remains stable. The report highlights the significant role of master trusts: they hold 92% of DC memberships and 83% of DC assets.

Read the report.

PPF final levy rules

The Pension Protection Fund (PPF) has published its levy policy statement and final rules for 2026/27. These confirm the PPF’s earlier announcement that it will not charge conventional schemes a PPF levy next year and will maintain a proportionate, risk-based ACS (Alternative Covenant Schemes) levy.

Schemes are still required to submit an Annual Scheme Return submission in full via Exchange, including s179 valuations and asset-backed contribution (ABC) information. However, schemes no longer need to provide voluntary information previously submitted to obtain a levy saving (such as deficit reduction contribution and contingent asset certifications) or data previously submitted directly to the PPF (including ABC certificates, contingent asset documents, special category employer applications and exempt transfer evidence).

Schemes should also note that the D&B insolvency risk portal will close on April 1, 2026; the PPF recommends downloading any required information by March 31, 2026.

Read the statement and final rules.

Bereaved partner's paternity leave: final regulations

Regulations have now been made introducing a new statutory leave entitlement from April 6, 2026: bereaved partner’s paternity leave. This will be an extended form of paternity leave of up to 52 weeks, following a child’s birth or adoption, available to the father of a child or the spouse/civil partner/partner of a child’s primary caregiver, where the child’s primary caregiver dies.

Schemes and employers should confirm whether rule amendments are required and make sure family leave policies and procedures reflect these updates.

Read the regulations.

PASA Trustee-Administrator Lifecycle Series: Parts 2 and 3

The Pensions Administration Standards Association (PASA) has published Parts 2 and 3 of its Trustee-Administrator Lifecycle Series, providing guidance for trustees on appointing a new administrator and managing the installation and transition process.

Part 2 focuses on the considerations trustees should address before, during and after a market review for administrator services. Part 3 addresses the installation phase following appointment of a new administrator, including managing risks, priorities and opportunities.

Part 4 of the series will cover how trustees and administrators can build and maintain a strong and productive relationship over time.

Read Part 2 and Part 3 of the Trustee-Administrator Lifecycle Series.

Dashboards standards consultation deadline extend

The Money and Pensions Service (MaPS) has extended the deadline for responses to its consultation on dashboards reporting standards. The consultation will now close on April 30, 2026.

Read the consultation.