We’ve published our consultation on the proposed changes to our levy rules for 2022/23.
Given our strong financial position, we’ve been able to hold key elements of the way we calculate the levy unchanged. Taken together with improvements in scheme funding, an update in the way scheme underfunding will be calculated, and employers’ financial resilience despite recent economic challenges, this has led to a levy estimate for 2022/23 of £415m. This is a drop of £105m on the 2021/22 estimate.
As a result, we expect 82 per cent of schemes that pay a risk-based levy to see a reduction in their levy compared to 2021/22.
Change is limited this year. The consultation confirms that we intend to:
- Retain the lower risk-based levy cap of 0.25 per cent
- Retain the small scheme adjustment that reduces the levy paid by small schemes by up to 50 per cent
- Continue to offer support to schemes and employers that are struggling to pay the levy on time
The consultation closes at 5pm on Tuesday 9 November.
We expect to publish the final rules in December 2021.
Read more about our proposals, and tell us whether you agree with them, by responding to the consultation.
There are two versions of the consultation response form – full or quick – and there's the option to download a pdf version of the form, complete it offline and submit it electronically.
Read more about how we can help schemes who are struggling to pay their levy invoice on time.