Current Issues - August 2025

Please see excerpts below from this month's Current Issues. Click here to read the full publication. 

Phase two launch: Commission is a go

On the eve of the House of Commons’ summer recess, the UK Government announced (with an unseasonal blizzard of publications) the formation of a new Pensions Commission, tasked with bringing forward proposals for improving outcomes for future pensioners. The Commission’s inauguration fulfils the promise of a ‘Phase Two’ to the Pensions Review, focusing on adequacy of benefits. A review of State pensionable age (SPA) will operate alongside it.

IHT rethink reprieves administrators 

His Majesty’s Revenue and Customs (HMRC) has relented on plans to make pension scheme administrators responsible for the application of inheritance tax (IHT) to death benefits. Pension rights are still being brought within the ambit of IHT, but the primary role in the process will be played by the deceased member’s personal representatives. There are details yet to be settled and kinks to be worked out of the proposals before they come into effect on 6 April 2027.

Targeting support at the advice–guidance boundary

The Financial Conduct Authority (FCA) published proposals for 'targeted support', a form of regulated financial activity that would be available to help with pensions and retail-investment decisions. The consultation paper also includes the FCA's 'early thinking and direction of travel' on ‘simplified advice’ (a personalised recommendation, but based on lower-level investigation of the client’s needs and circumstances than is typically required for regulated financial advice), and clarification of the advice–guidance boundary.

Annual report season

[Highlights from the recently published 2024/25 annual reports from The Pensions Regulator, Pensions Ombudsman and Pension Protection Fund (PPF).]

Dashboards update

The Pensions Dashboards Programme has announced the 'technical connection' of the State pension—plus 'Hundreds of pensions providers and schemes and 20 million pension records'—to the dashboards system.

PPF admin levy—back after break 

Following a two-year break, the Pensions Regulator (on behalf of the Secretary of State for Work and Pensions) has started invoicing schemes eligible for the Pension Protection Fund (PPF) for the PPF administration levy. The levy recoups any Government grants to the PPF Board to cover the expenses of running the PPF and the Fraud Compensation Fund.  

Pensioner hardship recommendations

The House of Commons Work and Pensions Committee has published a report on Pensioner Poverty: Challenges & Mitigations.

HMRC newsletters: July 2025 

[Highlights from His Majesty's Revenue and Customs' Pension Schemes Newsletter 171.]

This communication has been compiled by Hymans Robertson LLP® (HR) as a general information summary and is based on its understanding of events as at the date of publication, which may be subject to change. It is not to be relied upon for investment or financial decisions and is not a substitute for professional advice 
(including for legal, investment or tax advice) on specific circumstances. HR accepts no liability for errors or omissions or reliance on any statement or opinion. Where we have relied upon data provided by third parties, reasonable care has been taken to assess its accuracy however we provide no guarantee and accept no liability in respect of any errors made by any third party.