- The PPF confirms levy rules for 2022/23 as set out in September’s consultation including continuation of measures to support schemes and employers through the pandemic
- Additional measure added to protect the minority of schemes whose bills would rise significantly
- Levy estimate revised down to £390m
The PPF has today announced its final levy rules for 2022/23 which include a new measure to protect schemes whose levy would otherwise increase significantly. It has also revised its levy estimate down to £390m, a reduction of £130m on the previous levy year.
The policy statement confirmed the measures introduced to help schemes and employers with the cost of the levy in 2021/22, including the Small Scheme Adjustment, lower cap on the risk-based levy and COVID-19 payment easement, will remain in place.
Under these rules the PPF estimates that more than 80 per cent of schemes that pay a risk-based levy will see their levy fall.
For the minority of schemes that don’t see a reduction in their levy bill, a new limit will be introduced for 2022/23 only, which will ensure individual risk-based levies will not increase by more than 25 per cent compared to 2021/22. The new limit responds to the PPF’s monitoring and to stakeholder and industry feedback noting the extent to which forced closure of businesses during the pandemic has resulted in downgrades in insolvency risk scores.
The PPF has updated the amount it expects to collect from its levy payers, to reflect the introduction of the 25 per cent limit on increases in the risk-based levy, and also to reflect market movements and changes in insolvency risk scores up to the end of October. It now expects to collect £390m.
The announcement follows a six-week consultation which invited PPF levy payers and industry stakeholders to comment on the proposed 2022/23 levy rules.
David Taylor, Executive Director and General Counsel at the PPF said: “We’re grateful for the positive engagement we’ve received from our levy stakeholders, and are confirming our proposed levy rules which will see the majority of levy bills drop in 2022/23. We do however recognise the exceptional nature of the pandemic, and the potential impact of levy increases for a limited number of schemes. Our new and existing support measures are intended to help schemes and employers through this period.”