Local Government Pension Scheme

(asked on 12th January 2026) - View Source

Question to the Ministry of Housing, Communities and Local Government:

To ask His Majesty's Government whether they assess (1) the Local Government Pension Scheme costs, and (2) the extent to which a local authority has engaged with its administering authority to ensure that employer contribution rates to the Local Government Pension Scheme are reasonable and sustainable, when a local authority requests urgent financial support under an exceptional financial support arrangement.


Answered by
Baroness Taylor of Stevenage Portrait
Baroness Taylor of Stevenage
Baroness in Waiting (HM Household) (Whip)
This question was answered on 21st January 2026

Employer contributions for the Local Government Pension Scheme are set every three years as part of a triennial valuation process. Administering Authorities work with actuaries to set contribution rates, and there is a period of consultation with employers before rates are finalised. This is a locally managed process, and we expect employers and Administering Authorities to work together to set a rate that is fair and sustainable for both employers and the Fund.

The department works closely with councils in receipt of Exceptional Financial Support and ensures that a wide range of factors are reviewed to support long-term financial sustainability.

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