7 Days is a weekly round up of developments in pensions, normally published on Monday afternoons. We collate this information from key industry sources, such as the DWP, HMRC and TPR.

In this 7 Days

TPR sets out its plans for 2025

On 17 February 2025, TPR published a blog outlining its approach to regulation in 2025. Nausicaa Delfas, TPR’s Chief Executive, explained that TPR will be implementing its “vision” of a more prudential style of regulation this year. Its aims include:

  • focusing on the need for better data “to raise standards, capitalise on new opportunities and reduce regulatory burdens”
  • progressing the joint VFM framework, and
  • implementing a “more strategic approach” to raising standards in trusteeship.

TPR intends the year to be one of “decisive action”, with genuine and open collaboration and a focus on long-term outcomes for savers over “tick-box regulation”.

TPR publishes report on DC and master trust supervision

TPR published a report on 20 February 2025 on its new approach to oversight of the DC and master trust market. The report was based on a review of its existing approach and a 14-week pilot study which involved TPR working with three large master trusts. TPR used this pilot to test its new approach in real time to see how it would work in practice.

Based on findings from its review and pilot, TPR is launching a “direct expert-to-expert engagement model”, with DC schemes grouped into four segments, each with a segment lead:

  • monoline master trusts (larger schemes that carry a higher risk to the market)
  • commercial master trusts, including those that form part of an insurance offering
  • non-commercial (or industry-wide) master trusts and CDC schemes, and
  • single and connected employer DC schemes.

Each segment will have tiers of engagement based on the specific risks they present to market and saver outcomes.  Every scheme in the monoline and commercial segments will be allocated a dedicated multi-disciplinary team of named individuals with expertise in financial analysis, business strategy, investment and governance.

The move is an example of TPR’s shift to a more prudential style of regulation, focusing on addressing risks not just at an individual scheme level, but also those risks which impact the market and wider financial ecosystem.

First top-up payments from net pay arrangement reforms to be made in 2026

It has been confirmed that HMRC is developing a new “IT solution” to make top-up payments to low earners contributing to “net pay” pension arrangements who do not receive the 20% tax relief which is automatically applied in “Relief at Source” pension arrangements.  This follows legislation introduced in 2023 designed to address the disparity between pension schemes offering tax relief at source and net pay provisions for low-paid workers. Top-up payments will be made for the 2024-25 tax year and the first payments to eligible recipients should be made in 2026.