Local Government Reorganisation and devolution - but will it get my bins collected?

Milestone for priority areas

On 26 September 2025 the latest milestone for the Local Government Reorganisation (LGR) project was reached, with the priority devolution areas having to submit their final proposal. It’s been a challenge, with lots of articles circulating about disagreements between different tiers in Local Government on what the future should look like.

But what does this mean for funds in the LGPS?

Move your fund up the LGR pecking order

It’s easy for the LGPS to be an afterthought when it comes to the overall reorganisation of Local Government. Some LGPS funds are proactively engaging with the subject, exploring the cost and contribution implications of the different ways their catchment areas might be divided or looking at different models of running their funds. But not all are.

The LGPS, doubtlessly sadly for practitioners and those working within the funds, seems to have played second fiddle to other aspects of LGR. This is despite it looking after the retirement provisions of millions of people and having assets valued in the billions under management. In fact, the LGPS gets very few mentions in the legislation related to devolution.

For the host authorities there are understandable concerns which need to be addressed. For example, the increasing costs of social care and how this will be delivered, or providing the basic services that residents expect – such as the ever-necessary bin collection. Set against this backdrop, the needs of a pension fund (which is probably in surplus) will seem a much lower priority to the outside eye.

From an administrative perspective, LGR will create a lot of work. At the very least the current Administering Authority for affected Funds will cease to exist and be replaced by another body, leading to a wholesale review of policies, branding and communications. Outsourced service providers may well change with service contracts adjusted or ended, leading to a surge in member movements and status changes on top of the impact of the changes made to the various councils.

Failing to plan is planning to fail

For funds in the priority areas, it's important they know what is being proposed so they can plan for the changes to come. For those in areas that are yet to put forward the final proposal, there is still time to engage with the host authority.

While the LGR changes aren’t going to take effect fully until April 2028, the related elections are coming in May 2026. This opens the door to wholesale change in pension committees with all the training needs that brings. The direction of travel is for significantly less councillors being in place across the country. Funds can expect committee members to be even busier, making the setting aside of time for all the necessary training increasingly difficult.

The world of the LGPS is one of change. Dashboard, McCloud, New Fair Deal, Fit for the Future, Good Governance and, of course, LGR. This is a lot to stay on top of, and poses a real challenge to the available officer resource in a landscape of uncertainty. What’s more, funds can’t lose sight of the day-to-day business of their operations which must continue uninterrupted.

If you do one thing today, start building a plan. After all, those figurative bins still need collecting. And of course, please speak to your usual contact at Hymans if you’d like some support – we’re already helping funds to manage activities around administration, governance, actuarial and project management.