Respond to our online consultation on the changes to our levy rules in 2021/22.
Our strong financial position at the start of the COVID-19 pandemic has meant that despite increased risk, we’ve avoided increasing the levy. In fact, this - coupled with an update to the way scheme underfunding is calculated and our policy developments – has meant the amount of levy we expect to collect will drop to £520 million in 2021/22 - £100 million lower than 2020/21.
We’re proposing two developments for the 2021/22 levy year that better reflect the risk posed to us by small schemes, and help with the cost of the levy:
- The levy for schemes with less than £20 million in liabilities will be halved, to better reflect their risk to us. The reduction will be tapered so only schemes with £50 million or more in liabilities will be charged in full. This long-term measure will benefit close to 2,000 schemes with SME employers, at very limited overall cost
- The cap on the amount of levy paid by any individual scheme will be cut from 0.5 per cent of that scheme’s liabilities to 0.25 per cent
Complete our online consultation
Late last year, we consulted on our move to risk insolvency partner Dun & Bradstreet (D&B) and took our consultations online for the first time. Since then we've listened to your feedback and made it even easier for you to submit your responses to us.
As well as two versions of the consultation response form – full or quick – there’s now the option to either respond to the full consultation online, or to download a pdf version of the form.
The pdf can be completed offline, using Acrobat Reader or a similar pdf reader software, making it easier to invite input from your colleagues, before submitting to us.
The deadline for submissions is 5.00pm on Tuesday, 24th November 2020.
We encourage all those with an interest in the levy to take part in the consultation and we look forward to hearing your views.
To read and respond to the consultation visit our Help shape our rules page.