Jessica O'ConnorThe Government has launched a consultation on proposed changes to the Local Government Pension Scheme (LGPS) in England and Wales, with plans to strengthen protections for outsourced workers and widen access to the scheme.
The proposals are supported by actuarial analysis from the Government Actuary’s Department (GAD).
The consultation, issued by the Ministry of Housing, Communities and Local Government, will run until 22nd December 2025.
The changes follow earlier reforms aimed at improving fairness and reducing inequalities such as the gender pension gap.
The LGPS currently serves more than 6.7 million members and holds around £400bn in assets.
One of the central proposals introduces new Fair Deal protections to ensure that workers who are outsourced from local authorities can continue to access the scheme, rather than being moved to alternative pension arrangements. The move would align local government practice more closely with central government.
GAD provided cost impact assessments and modelling to support the consultation, including estimating that extending pension access to mayors and councillors in England could increase employer contributions by between £40m and £45m annually.
The consultation also considers simplifying pension arrangements for academy schools and changes linked to the normal minimum pension age following the Finance Act 2022.
Will King, senior policy lead at MHCLG, said: “These are important proposals for the LGPS and developing them required co-ordinating a multi-disciplinary team within government. GAD has been a key partner, providing crucial analysis and insights throughout the process.”
The consultation is open to scheme members, administering authorities, employers and other stakeholders. It seeks views on how best to ensure fair access while supporting long-term sustainability of the public service pension system.
