The Society of Pension Professionals (SPP) has raised concerns over the “significantly higher” general levy increases proposed for master trusts and personal pension providers, calling on the government to provide evidence-based justification for these rises.

The Department for Work and Pensions (DWP) announced last month that it was consulting on reforms to the general levy for occupational and personal pension schemes, including increasing rates over a three-year period from April 2027.

In response to the consultation, the SPP questioned the rationale for placing the largest levy increases on master trusts and personal pension providers, without evidence they generate a higher regulatory burden.

The SPP warned that additional levy costs, alongside a raft of other government-led reforms, would compound financial pressures on the sector.

The representative body called on the government to provider clear, evidence-based justification for these rises, and recommended unified, consolidated reporting across The Pensions Regulator, The Pensions Ombudsman, and the Money and Pensions Service, to demonstrate cost drivers, efficiency and value for money.

SPP DC Committee deputy chair, Madalena Cain, said: "The SPP fully supports steps to ensure our regulatory bodies are adequately funded in order to protect savers. However, any changes to the general levy must be fair, proportionate, and transparent.”

She added that government must ensure levies are “carefully balanced” with industry affordability.

“Moving forward, our recommendation to introduce consolidated reporting across all levy-funded bodies would greatly help to provide the transparency and accountability pension schemes – and ultimately savers – rightly deserve," Cain said.

Looking to the future, the SPP suggested exploring a split-charging structure as the market continues to consolidate.

This would mean retaining per-member fees for guidance/ombudsman services while aligning regulatory costs with assets under management.

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