The Department for Work and Pensions (DWP) has extended the deadline for responses to its final consultation on the value for money (VFM) framework by two weeks.

Following stakeholder representations, responses can now be submitted until 11:59pm on 15 September 2026, replacing the previous deadline of 11:59pm on 1 September.

The consultation, published alongside draft regulations, sets out the final policy proposals ahead of the framework's implementation.

Under the framework, defined contribution (DC) pensions will be assessed against investment performance, costs and charges, and quality of service, before receiving a rating ranging from red for poor value to green for arrangements outperforming on value.

The proposals include a phased implementation approach, with master trusts, large single-employer trusts and all firm-designed, open, multi-employer contract-based schemes expected to complete full VFM assessments and ratings in 2028.

Smaller single-employer trusts, legacy arrangements and bespoke schemes would initially be required to submit data to regulators without this being made public.

From 2029, all in-scope arrangements are expected to complete full disclosure, assessment and rating requirements.

However, consequences for underperforming schemes, including compliance notices, fines or requirements to take steps towards wind-up, would only apply from the second assessment cycle onwards rather than immediately.

The DWP has also proposed shortening the initial data collection period to July-December 2027.

Other changes include a proposed geometric averaging methodology based on representative member experience and replacing the requirement for trustees and firms to obtain third-party advice on forward-looking metrics with mandatory disclosure of underlying assumptions.

The consultation is also seeking views on the timing of data publication and whether a more tailored approach should apply where arrangements are assessed at different year-to-date points.

The final regulations and the government’s response to the consultation are expected to be published by January 2027.

The Pensions Regulator is also expected to consult on any necessary codes of practice and guidance, while the Financial Conduct Authority is due to publish a policy statement and rules for the contract-based market in the first quarter of 2027.

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