Question to the Ministry of Housing, Communities and Local Government:

To ask His Majesty's Government whether they assess (1) the Local Government Pension Scheme costs, and (2) the extent to which a local authority has engaged with its administering authority to ensure that employer contribution rates to the Local Government Pension Scheme are reasonable and sustainable, when a local authority requests urgent financial support under an exceptional financial support arrangement.

Answered by Baroness Taylor of Stevenage - Baroness in Waiting (HM Household) (Whip)

Employer contributions for the Local Government Pension Scheme are set every three years as part of a triennial valuation process. Administering Authorities work with actuaries to set contribution rates, and there is a period of consultation with employers before rates are finalised. This is a locally managed process, and we expect employers and Administering Authorities to work together to set a rate that is fair and sustainable for both employers and the Fund.

The department works closely with councils in receipt of Exceptional Financial Support and ensures that a wide range of factors are reviewed to support long-term financial sustainability.