Pensions law update: October 2026

Pension Schemes Act 2026 reforms

Small pots – consultation published

Following on from the policy paper published this summer, and as promised in the pensions roadmap, the DWP has published a consultation paper outlining further detail on the proposed shape of the multiple default consolidator approach to addressing the proliferation of small pots in DC schemes. Rachael Skuse outlines key aspects of the DWP’s proposed solution, including the detailed timetable for delivery.

Did you know we have a dedicated webpage for the PSA26 reforms?

As well as the latest edition of our handbook (updated on 5 August 2026 to account for the latest publications from the DWP, TPR and HMRC), you’ll find timelines outlining key DB and DC milestones and a library of our thought leadership articles, all organised by theme for ease of navigation.

Policy developments

Budget 2026

On 28 October 2026 the new Chancellor John Healey will deliver his first Budget. While the Prime Minister’s announcement about changes to the state pension triple lock that will take effect from 2030 has dominated the headlines, there are a number of other pensions benefits and taxes where reforms could be under consideration.

In this article Richard Knight and Louise Pettit look ahead to the Budget and identify what we think could be the key pensions policy areas to watch.

State pension triple lock reforms

At the recent Labour Party Conference, the Prime Minister announced that the current state pension triple lock will be ‘adjusted’ from April 2030. While we await the full details, under the proposed approach, the state pension would be increased each year by the higher of CPI inflation and 2.5%, with the direct annual earnings link being removed. It would however then also receive an additional uplift required to maintain its value in comparison to average earnings over time. This is more than simply a move from a triple to double lock, with some aptly labelling it a ‘soft triple lock’.

New National Collective Pension Scheme for care workers

Another key announcement from the conference speeches was the Secretary of State for Health & Social Care’s confirmation that there will be a new National Collective Pension Scheme for workers in the care sector. The details are yet to be announced but it looks like this could be a significant development for the evolving Collective Defined Contribution (CDC) market.

Auto-enrolment inquiry

On 16 September 2026, the Work and Pensions Committee launched an inquiry to consider auto-enrolment, and specifically how the current framework could be reformed to “help ensure fair employer and employee contributions to secure a decent retirement income for earners”. While recognising concerns about affordability, recent industry research by Pensions UK revealed broad support from both individuals and employers for increasing auto-enrolment contribution rates.

The WPC inquiry comes in the context of the ongoing work of the Second Pensions Commission, which has been tasked by the Government with formulating recommendations as to how the UK pensions system can be reformed with a view to ensuring fairness, adequacy and sustainability. The Commission’s final report is expected in Spring 2027 and Pensions Minister Torsten Bell commented this week that the Government “will act on its findings”.