As part of our assessment of the Pension Schemes Act 2026 reforms the Department published an Impact Assessment, in addition to its 2024 report on Pension fund investment and the UK economy. These show that schemes operating at scale are better placed to deliver lower costs, stronger governance and improved long‑term outcomes for savers, reflecting international evidence.

The Act also makes provision for new entrants to operate in this market.

The reforms do not compel schemes to consolidate if they fall below the scale thresholds. However, from 2030, multi-employer schemes that do not meet the prescribed thresholds will be prohibited from accepting future automatic enrolment contributions. This is designed to encourage a market-led transition with schemes responding in a planned orderly way, support by regulatory oversight.