04 November 2026
5 min
Welcome to the latest edition of Current Issues. This month, we cover a wide range of developments shaping the pensions landscape. From the pensions-related measures announced in Budget 2026 and the implications of the latest inflation figures, to updates from the PPF and new guidance on the use of AI in pension schemes. Below, we’ve highlighted key issues from this month’s publication. Click here to view the full edition.
John Healey, Chancellor of the Exchequer, delivered his maiden Budget speech on 28 October 2026. His mantra going in, echoed in the speech, was ‘breathing space today and fresh hope for the future’, with the focus on easing cost-of-living pressures and enabling business growth. That being the case, expectations were that this Budget would be a relatively low-key affair and on that basis, the Chancellor didn’t disappoint. For pensions, the highlight was the announcement of a new pension tax allowance for low-income pensioners, but the main Budget document (the Red Book) and various supporting documents added a few other morsels.
In October 2026, the Office for National Statistics reported a 3.5% rise in the Consumer Prices Index (CPI) from September 2025 to September 2026. This figure, typically used to adjust UK pensions and benefits, will be reflected in statutory orders for benefit increases in 2027.
The Pension Protection Fund (PPF) has announced that it will impose no levies in 2027/28. In addition to continuing its recent policy of not levying conventional schemes, it is pausing the levy for ‘alternative covenant schemes’ (ACS) for a year whilst it completes a review of the ACS-levy methodology.
The Deputy Pensions Ombudsman (DPO) took aim at a scheme's pensionable-service cap, concluding that its application had discriminated against a member on both age and part-time-working grounds, because she had gained insufficient benefit from continuing her contributions (at the full rate) after the cap took effect.
AI'm the king of the world
In October, the Pensions Regulator's output tackled the theme of how the industry ought to welcome its new robot overlords. Firstly, it published guidance on AI Concentration Risk in scheme investment portfolios. Later, it encouraged trustees 'to embrace AI opportunities responsibly', giving guidance on how to do so.
Click the button below to read the full issue. If you have any queries about this publication, please get in touch.
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.
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