TISA calls for stronger evidence to justify pension levy increases for Master Trusts and Personal Pensions
TISA has called for stronger evidence to justify the Government’s proposed increases to the General Levy for Master Trusts and Personal Pension schemes, warning that additional costs could divert investment away from services and innovation designed to improve outcomes for pension savers.
In its response to the Department for Work and Pensions’ Occupational and Personal Pension Schemes (General Levy) Regulations review 2026, TISA supports the principle that different scheme categories may warrant different levy rates where these reflect genuine differences in regulatory activity. However, it raises concerns that the proposed significant increases for Master Trusts and Personal Pensions lack sufficient evidence and calls for greater transparency over the regulatory activities, underlying costs and methodology used to determine their share of the levy.
TISA also raised concerns about the implementation timetable, with revised rates expected to take effect from April 2027. In their response, they highlighted that current uncertainty around the confirmation of the final levy framework could leave firms with limited time to incorporate final charges into budgets and business plans. TISA also suggest transitional arrangements or phased implementation for significant increases to help schemes absorb additional costs without unnecessarily diverting investment from member services and other regulatory initiatives.
Renny Biggins, Head of Policy: Products & Long-Term Savings at TISA, commented:
“Different pension schemes place different demands on regulators, so different levies can be justified. But significant increases need clear evidence behind them, particularly for Master Trusts and Personal Pension, to maintain industry confidence that what they are paying is proportionate and delivers value.
The industry is already managing a huge amount of regulatory change, while continuing to invest in better products and services to improve outcomes for pension savers. As additional regulatory costs risk diverting investment away, it needs to be clearly justified and introduced with sufficient time to allow firms to plan.”
TISA’s response also sets out several other recommendations:
- Increase transparency over how levy funding is spent and what it delivers, including clearer expenditure reporting, measurable outcomes and greater visibility over the costs and delivery of major projects.
- Ensure the levy framework remains appropriate for the pensions market beyond 2030, reflecting consolidation and potential synergies between workplace and retail pensions.
- Ensure future regulatory change across the FCA and TPR regimes is strategically coordinated, proportionate and targeted where it is genuinely needed.
Renny added:
“The pensions market could look very different by 2030, with greater consolidation and potential synergies between workplace and retail pensions emerging. We need a levy framework which can evolve, rather than being designed around the current pension landscape.
More broadly, future regulatory changes need to be better coordinated across FCA and TPR regimes so that future changes are properly coordinated, targeted where they are genuinely needed and kept to a minimum. That will give firms more space to focus their resources on what ultimately matters: delivering better outcomes for savers. We look forward to continuing to work with the Government, regulators and firms to do this.”
ENDS.
Notes to editors
- A full copy of TISA’s response is available on request.
- Occupational and Personal Pension Schemes (General Levy) Regulations review 2026 is the Department for Work and Pensions consultation on proposals to reform the General Levy, which funds the system of regulation, oversight, and protection for the UK’s private pensions market. The consultation closes on the 8th September.
- TISA is a not-for-profit membership organisation committed to improving the financial wellbeing of all UK consumers by working collectively with the financial services industry to deliver solutions and champion innovation, for the benefit of people, our industry, and the nation.
- TISA has approximately 260 member firms involved in the supply and distribution of savings and investment products and associated services. Members include the UK’s major investment managers, retail banks, online platforms, insurance companies, pension providers, distributors, building societies, wealth managers, third party administrators, FinTechs, financial consultants, financial advisers, industry infrastructure providers and stockbrokers.