LGPS Consultation on Access and Fairness: Proposed Reforms to Survivor Benefits and Scheme Equity
20 Aug 2025
2 min read
On 15 May 2025, the Ministry of Housing, Communities and Local Government (MHCLG) launched the “Access and fairness” consultation (the “Consultation”) (and published draft regulations), inviting views on proposed changes to the Local Government Pension Scheme (LGPS). The Consultation sought to address perceived inequities in the LGPS’ treatment of members and their dependants, particularly in relation to survivor benefits and death grants. It also covered proposed amendments to LGPS forfeiture provisions and several ancillary points.
Focuses of the Consultation
A key focus of the Consultation is the treatment of survivor pensions. Under current LGPS legislation, certain survivor pensions paid to husbands, wives or civil partners are calculated differently depending on the sex of the member and their partner. This has led to inconsistencies in pension outcomes based on gender. MHCLG proposes to amend the rules to equalise the survivor pension entitlement of all members, regardless of the sex of the eligible member or their survivor (to provide the highest level of entitlement).
Another significant proposal concerns the death grant payable upon the death of a pensioner member. Presently, when a member over age 75 dies there is no death grant paid. This could therefore disadvantage members who retire later in life. The Consultation proposes removing this upper age limit, thereby ensuring that the beneficiaries of members who die on or after age 75 would also receive the death grant.
These changes are intended to be backdated, meaning that certain survivor pensions that are already being paid will increase and new death grants will be paid where they would not have been payable previously.
The Consultation also outlines further proposed amendments to the LGPS benefit structure and wider provisions, including:
- Adjustments to how unpaid leave affects LGPS pension accrual;
- Enhanced reporting on the gender pension gap and opt-out rates; and
- Technical changes to ensure fair treatment of members protected by the McCloud remedy.
Comment
The Consultation closed on 7 August 2025 and MHCLG is analysing feedback.
The changes proposed by the Consultation do represent a meaningful step toward greater equity and transparency within the LGPS. By addressing historical inconsistencies and proposing reforms that enhance fairness, particularly in relation to survivor benefits and death grants, the government signals a commitment to improving outcomes for LGPS members.
The Consultation is a step in the right direction. It reflects a broader trend in public sector pensions toward inclusivity and fairness, and its proposals (if implemented) should improve the experience of LGPS beneficiaries. There will be a cost to meeting the additional liabilities. However, MHCLG may take the view that, given the current positive funding position of the LGPS (in aggregate), the additional liabilities can be managed.
This article was written by Michael Hayles and Callum Duckmanton.
It fundamentally improves fairness in and access to the LGPS, addressing key issues that have been neglected for too long and treating them with the urgency they deserve. Its focus on equality, fairness, integrity, efficiency, accuracy and rewarding hard work reflects the government’s commitment to making work pay and improving workers’ rights.