The government has agreed to move the mandatory scheme pays deadline to 6 July 2027, aligning with the deadline for pensioner members, in what industry experts have branded as a "very welcome and pragmatic move".

HMRC's latest Pensions Schemes Newsletter confirmed that some schemes are still issuing statements relating to the public service pension remedy.

In order to ensure that those members do not lose out, ministers have now agreed to move the mandatory scheme pays deadline to 6 July 2027 to align with the deadline for pensioner members.

This will apply to all members who have already submitted a scheme pays election to HMRC as part of the public service pensions remedy for the tax years 2019 to 2020 through to 2022 to 2023, where they missed the original deadline for mandatory scheme pays of 6 July 2025.

HMRC said it intends to include provisions to this effect in its next set of regulations and that it expects all remedy scheme pays elections to be treated as mandatory until the new, later date.

Whilst guidance for scheme administrators and affected members will not be updated until the regulations are in effect, HMRC confirmed that HM Treasury has agreed to extend the deadline before the regulations are enacted, stating that the industry should treat the deadline as 6 July 2027 from now on.

Quilter NHS pensions specialist, Graham Crossley, said the extension to the deadline was "a very welcome and pragmatic decision from government", having previously called for “urgent measures” to help savers avoid missed opportunities after news of a delay in the production of some remedial service statements (RSS).

"With many public service schemes still working through the complex process of issuing revised pension input statements due to the McCloud remedy, this move ensures that affected members, particularly those who may have missed the original 6 July 2025 deadline, won’t be unfairly penalised," he stated.

"Changing the deadline avoids creating unnecessary two-tier outcomes. Crucially, it provides a fair opportunity for members to use scheme pays to cover annual allowance tax charges without having to find large sums from their own pocket.

"We would still urge members to seek advice or support from their accountant, financial adviser or NHS pension specialist firm, to ensure deadlines are not missed and elections are submitted correctly. While this delay gives breathing space, it’s important not to wait until the last minute.”

Despite the extension, the government recently suggested that progress is being made in sharing RSSs, confirming that, across the police scheme in England and Wales, around 90 per cent of the total number of RSSs have so far been issued..

Whilst this is not yet matched by other schemes, the government said that "significant progress" is also being made elsewhere.

It also defended the recent delays, with Economic Secretary to the Treasury, Emma Reynolds, stressing that "delivering the remedy to more than 3 million affected scheme members is also an intensive administrative challenge".

She also reassured individuals that where there is an uplift in interest on pension payments, interest will be paid on arrears, so they will not lose out financially as a result of the delays.

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