On May 15, the UK government outlined a new set of pension reforms targeting the Local Government Pension Scheme (LGPS) in England and Wales, a move expected to impact millions of workers across the public sector. Officials describe the measures as a response to long-standing calls for a more balanced and inclusive retirement framework.
According to the Manchester Evening News, the government believes these changes will lead to “more money in the pockets of hard-working people” at retirement. While the full scope of reforms is still being examined, early details suggest a strategic shift in how pension rights are protected and extended.
LGPS to Include Maternity, Adoption and Shared Parental Leave in Pensionable Service
Under the new provisions, the LGPS becomes the first UK public service pension scheme to make all maternity, shared parental and adoption leave automatically pensionable, including the final 13 weeks of statutory maternity leave.
This measure directly addresses one of the most significant contributors to the gender pension gap, which disproportionately affects women.
According to the Ministry of Housing, Communities and Local Government, 74% of LGPS’s seven million members are women. Gaps in pensionable service during maternity leave have been a consistent source of long-term inequality in retirement income.
The reforms will also address pension discrepancies for survivors, which currently vary depending on the legal status of their relationship with the scheme member. These changes aim to ensure equal survivor benefits for all partners and spouses.
Full Support for Pension Reforms From Ministers and Frontline Focus
Deputy Prime Minister Angela Rayner highlighted the direct benefits of the pension reforms for essential
These historic changes will give hard working street cleaners, librarians, school cooks and other public servants the security that they deserve.
This is a critical step in ending years of discrimination, backing our dedicated public servants and helping to Make Work Pay.
Minister of State for Local Government and English Devolution, Jim McMahon OBE MP, reinforced the importance of LGPS:
Having worked in local government for years, I know first-hand how much those who help keep the lights on across the country rely on the Local Government Pension Scheme.
Through these reforms, we will make sure they are properly rewarded and able to enjoy their hard-earned retirement.
Professions expected to benefit include those serving school lunches, cleaning buildings, managing libraries, and cleaning streets.
Removing Outdated Pension Limits and Closing Abuse Loopholes
In a move to strengthen ethical standards, the government has pledged to close loopholes allowing individuals guilty of serious offences to continue receiving LGPS benefits.
Additionally, the age cap of 75, which currently prevents a lump sum payment to survivors if the member dies after that age, will be abolished.
Minister for Pensions, Torsten Bell MP, stated:
Today’s changes will ensure more public servants get the benefits and security they deserve.
Our reforms to the Local Government Pension Scheme are bringing fairness and equality to workers, while boosting the potential of schemes to drive opportunity and growth in local communities.
Encouraging Participation and Understanding Opt-Outs
The government also plans to enhance data collection around opt-outs to understand why some eligible employees leave the scheme. The goal is to ensure as many workers as possible benefit from long-term pension contributions and security.
A 12-week consultation has been launched to gather feedback from LGPS members and stakeholders. This step is intended to incorporate member perspectives into the final policy framework and ensure reforms reflect frontline realities.
