British Gov’t Delays Levy Hike On Pension Schemes
Pensions schemes will not have to face a planned 10% hike on their general levies due to the financial stress caused by the COVID-19 crisis, the U.K. government has said.
The government said Friday that it will hold off on the planned 10% increase on the General Levy on Occupational and Personal Pension schemes, which was scheduled to take effect on April 1. Minister for Pensions and Financial Inclusion Guy Opperman said the government wants to support businesses through the coronavirus pandemic, which has now infected more than 700,000 people worldwide.
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“I understand the uncertainty businesses and employers are facing right now and that’s why we’ve withdrawn the pension schemes levy increase,” Opperman said.
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The government has revoked regulations that would have automatically hiked the general levy on April 1. It said it will now focus on conducting a wider review of the levy scheme and will assess whether further hikes will be required in 2021.
The general levy is used to fund the Department for Work Pensions, The Pensions Regulator, The Pensions Ombudsman, and the Money and Pensions Service. The government announced an increase to the fee following a consultation in autumn 2019.
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