Levy rules for 2024/25 year published

Our consultation setting out our plans for the 2024/25 levy rules closed on 30 October. Today we’ve published our policy statement and final levy rules.  

There will be a 50 per cent reduction in target levy collection next year, following strong support from our stakeholders during our six-week consultation period.  

In our consultation, levy payers and industry experts welcomed our proposals for the levy to fall from £200 million this current year to around £100 million for 2023/24. This is down from £390 million in 2022/23. 

Most consultation respondents understood and supported the PPF’s approach, considering legislative constraints, to maintaining a levy at this level in future years. 

When we were set up nearly 20 years ago, legislation sought to protect levy payers from sharp rises in the levy by imposing a limit of 25 per cent on year-on-year increases to the levy target.  

However, almost all consultation respondents felt strongly that legislation should be changed as soon as possible to allow us to move to a much lower or even a zero levy.  

We’ve shared these responses with the Department of Work and Pensions (DWP) who will consider the points raised and expect to legislate as soon as parliamentary time allows.  
 
David Taylor, Executive Director and General Counsel, said: “Next year’s target collection of £100m will be the lowest levy we’ve ever charged. As a result, almost all schemes will see a fall in their levy. 

“The possibility of zero levy in future has come closer into sight. To further reduce the levy in future, we need legislative change; I’m grateful that DWP are considering this.”