We’ve now published the final levy rules for 2021/22, alongside our policy statement summarising the responses we received during consultation, and our conclusions.
In December we let you know there was strong support for the measures we proposed in response to the COVID-19 pandemic and the proposed changes to the rules.
The published rules confirm that we:
- have introduced a small scheme adjustment to better reflect the risk posed by small schemes. This will halve the levy for schemes with under £20m in liabilities, and the reduction will be tapered so that only schemes with £50m or more in liabilities will be charged in full
- have reduced the cap on an individual scheme’s levy from 0.5% to 0.25% of its liabilities
- will measure insolvency risk using credit ratings and the insolvency risk model now operated by D&B, on the basis in use since April
- expect to collect a levy £520 million – retaining a levy scaling factor of 0.48
Guidance for commercial consolidators
In tandem with this we’ve published guidance for commercial consolidators, and are holding a short consultation, until 16 February 2021, as we’d welcome your views on the drafting.