Commons Sense

House of Commons · Written Ministerial Statement

Department for Education Local Government Pension Scheme (LGPS) Guarantee

12 November 2024 · Department for Education

Proposed by Bridget Phillipson Lab Houghton and Sunderland South

EducationLocal Government

Summarised by AI from the official record, so it can contain mistakes.

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At a glance

Key points

  • The Department for Education is committing to fund pension deficits for Further Education providers through the Local Government Pension Scheme Guarantee.
  • A Departmental Minute is being laid before both Houses to outline the use of a contingent liability for Further Education provider closures.
  • LGPS administering authorities are expected to incorporate the Crown guarantee into their funding strategies.

Issue summary

The statement addresses a government commitment to fund pension deficits for Further Education providers through the Local Government Pension Scheme Guarantee.

Action requested

The Department for Education is laying before both Houses a Departmental Minute that outlines the use of a contingent liability to provide a guarantee for Further Education providers in case of closure and insufficient reserves. LGPS administering authorities are expected to recognise this Crown guarantee in their funding strategies.

Key facts

  • The Department for Education has provided an LGPS Guarantee to Further Education providers.
  • The guarantee funds pension deficits if the provider’s reserves are insufficient upon closure.
  • A full Departmental Minute detailing the contingent liability is laid before both Houses.
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