The Pension Protection Fund (PPF) has confirmed that the impact of the Covid-19 crisis on levy bills will be “minimal”, with no individual scheme to be asked to pay more than 0.5 per cent of liabilities.

The lifeboat stipulated that there would be a limited impact as the rules used to calculate the levy were fixed before the Covid-19 pandemic.

It added that when calculating levy invoices, it would also be using information and data that was largely collected before the economic impact of the current crisis "became significant".

The statement follows concerns from Lane Clark and Peacock that recent market volatility could see a threefold rise in some schemes levy bills, as firms also a face a ‘perfect storm’ for their own funding levels.

The PFF said: “We recognise the current situation is having a significant impact on businesses globally and that this may create challenges for levy payers, and their sponsoring employers, in paying their 2020/21 levy bill.

“So we want to assure you of our support during these unforeseen circumstances."

It stated that it was considering "all options" to find ways to support firms, and would communicate any subsequent decisions before invoicing starts.

The lifeboat has also clarified that levy invoice rules for 2021/22 have not yet been set, and emphasisied that it would be “considering all the impacts of Covid-19 carefully” as it develops those rules.

It continued: "At the moment we’re considering the estimated amount of levy we plan to collect, and how we’ll distribute that levy across the schemes we protect.

“In doing this, we’ll take account of the implications for levy payers whose position has worsened."

Any increases to the amount collected will be limited through legislation to a maximum of 25 per cent on the previous year's figure, with the PPF stating that "as usual, [it will] be transparent and consult on plans later this year".

The PPF statement concluded: "We always plan for the long term and, despite recent significant market volatility, we’re well equipped to weather the storm and future challenges.”

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