News | November 24, 2023


On 22 November, the Chancellor delivered his Autumn Statement, featuring significant pension reforms designed to “improve pension savers’ returns and boost growth in the UK”. These reforms will significantly impact both DB and DC schemes:

  • The Chancellor announced a reduction in the authorised surplus repayment charge from 35% to 25% from 6 April 2024.
  • A consultation is to be launched this winter on changes to DB surplus repayment rules. This will include new mechanisms to protect members, and to encourage well-funded schemes to invest in assets yielding higher returns. It will also consider the option for DB schemes to elect for 100% PPF coverage in exchange for paying a higher levy.
  • The government will consult this winter on how to consolidate smaller DB schemes considered to be “unattractive to commercial providers” into a new statutory vehicle run by the PPF.
  • The government plans to launch a call for evidence on a lifetime provider model to tackle issues with “small pot” pensions, looking to pave the way for individuals to maintain one pension pot for life.
  • The multiple default consolidator model will be introduced, enabling a small number of authorised schemes to act as a consolidator for eligible pension pots under £1,000.
  • The government intends to establish a Growth Fund within the British Business Bank (BBB) to enable access to the BBB’s pipeline of opportunities, crowding private capital into the UK’s most promising businesses.
  • The government is publishing an update proposing to place duties on trustees of DC occupational pension schemes to offer decumulation services and products at an appropriate quality and price when savers access their pension assets.
  • The government will maintain the Triple Lock and state pension benefits will be increased in line with average earnings – by 8.5% from April 2024.
  • The government will legislate in the Autumn Finance Bill 2023 to remove the Lifetime Allowance.

Developments to the Mansion House Reforms:

The Autumn Statement also provided further developments on a number of the announcements made in the Chancellor’s Mansion House speech earlier this year:

  • There are now 11 signatories to the “Mansion House Compact” after Aon and Cushon joined this month. Signatories have pledged to commit to allocate at least 5% of their default funds to unlisted equities by 2030.
  • Following the publication of its consultation on the Value for Money framework, the FCA will consult in the spring on next steps. Notably, schemes will need to benchmark themselves against others in the market, including larger-scale schemes, to guarantee they are providing value for their members.
  • The government confirmed the deadline for consolidation of Local Government Pension Scheme assets has been accelerated to March 2025. Additionally, guidance will be revised to implement a 10% allocation ambition for private equity investments, which the government estimates will unlock around £30 billion.


  • The Chancellor’s Autumn Statement builds upon the government’s vision for future pension changes, initially set out under the Mansion House reforms. The government’s intention appears to be to strike a balance between bolstering pension savers’ returns and stimulating economic growth. Many of these measures will require further legislation and consultation and it could be some time until the extent of these reforms becomes clear. 
  • In particular, it will be interesting to see how measures such as the reduction in the authorised surplus repayment charge from 35% to 25% will impact future DB scheme funding. The lower charge may incentivise schemes to allocate funds more strategically, in order to support growth and improved financial outcomes for pension scheme beneficiaries. However, further consideration may be needed around the regulatory framework for employers in accessing these funds, and in terms of how such funds are re-invested.

You can read our previous update on the Mansion House reforms here, and our Pensions Compass article here.