LGPS and Local Government Reorganisation: is it getting any clearer?

In November 2025 the Government launched four consultations covering the priority areas. It had been expected that each area would submit a single, final proposal for how it would like Local Government Reorganisation (LGR) to take effect. But this expectation wasn’t achieved. 

For all the areas subject to a consultation – Essex, Norfolk, Suffolk, Hampshire, the Isle of Wight, East Sussex and West Sussex – multiple proposals were put forward by different groups of local authorities. The Government is consulting on all the various proposals and hasn’t indicated which ones it prefers. The consultations close on 11 January 2026. 

For other areas affected by LGR, the deadline for sending final proposals to the Government has now passed. And it doesn’t look like there was much consistency for these areas either, so we can expect more of the same when it comes to the next round of consultations. 

What does this mean for the LGPS? A continued lack of clarity. The LGPS is notable for its absence in the November consultations, with a focus on wider council services such as social care and waste collection. This means the Government’s longer-term vision for English LGPS funds post devolution is somewhat shrouded. 

Challenges for English LGPS funds 

The number, and geographic location, of the new unitary authorities will influence which ones become the new Administering Authorities for the existing funds. If this moves from the place where a fund is currently based, it presents new challenges as a new Administering Authority is likely to lack the experience of carrying out this role; and not all officers may be willing to travel to the new location.  

Some funds are also starting to think about future structures. Will they remain tied to the Host Authority, whoever that turns out to be, or do they become an arms’ length body? Does the Mayor of the Strategic Authority take over the running of the Fund or do a collection of unitary authorities form a joint enterprise? There are positives and challenges to each approach which officers, and LGPS committees, will need to understand if they are thinking about making changes. 

There will also be changes to the employers participating in the various funds. The local authorities will change, and we may see outsourced services being concentrated in fewer third-party providers. This can’t be considered in isolation. The final approach to New Fair Deal following the Access and Protections Consultations will impact relationships with the participating employers. It’s not yet confirmed if novated service contracts will continue under existing admission agreements or whether the Fund will only have a relationship with the letting employer, for example.  

What should officers be doing?

Senior fund officers should make sure they understand the various proposals that are being put forward in their area and how they might affect their fund going forward. This might be considering the impact on the administration team, the potential for a geographical change and whether the fund wants to take the opportunity to consider its operating structure. 

If you have any questions or are looking for support with your preparations for LGR, please get in touch. 

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