Legislative change is needed to provide the PPF with greater flexibility and ultimately enable it to set a zero levy. Pending legislative change, the PPF consulted this autumn on maintaining the levy at £100m next year.
Following the consultation the PPF Board has been carefully considering all options, including reducing the levy further before any legislative change. As part of this the PPF has been working closely with DWP.
Kate Jones, PPF Chair, said: “The Board is grateful to those who responded to our consultation and for the chance to openly engage with other key stakeholders. We need to balance the needs of all our stakeholders with our financial responsibilities and have been actively considering a wide range of options. To allow more time for this work, including engagement with colleagues at DWP, the Board will conclude its decision on next year’s levy in January.”
“We recognise the need to minimise uncertainty for levy payers but trust taking the time to get this right will be viewed positively. Ultimately, we don’t want to charge the levy for any longer than is needed and are working towards this goal.”
The PPF will now look to finalise and publish its levy determination and rules for 2025/26 by end January.
Kate Jones, PPF Chair, continued: “We recognise the vital importance of balancing both levy payer and member interests, and further government consideration of PPF and FAS indexation rules would be welcomed. We will continue to work constructively with DWP in the interests of all our stakeholders.”
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