Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government whether there has been an increase in the annual number of reported errors made by the Child Maintenance Service since July 2024.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Child Maintenance Service (CMS) operates within the wider DWP Quality Strategy designed to prevent, detect, and correct errors at the earliest opportunity. Where payments have been made in error, the CMS has processes to refund overpayments to the paying parent and, where appropriate, to seek recovery from the receiving parent. Decisions on reimbursement are made on a case-by-case basis and the welfare of all children affected in any given case will be considered as part of making this decision.
In addition, the Department’s approach to accuracy and error is subject to independent scrutiny, including oversight by the National Audit Office, providing further assurance that robust controls are in place and that any issues are identified and acted upon promptly.
The Department remains committed to improving its systems and processes to reduce the likelihood of error, ensure payments are correct, and take swift action to resolve issues where they occur.
The Child Maintenance Service (CMS) measures assessment accuracy by comparing the total weekly monetary value of correct and incorrect maintenance calculations to produce an overall percentage of correctly assessed cases. For 2024/25, CMS Monetary Value Error (MVE) accuracy was 99.5%, unchanged from 2023/24, where accuracy was also 99.5%. This indicates that the overall level of accuracy in maintenance assessments has remained stable over this period.
The Child Maintenance Service (CMS) Client Fund Accounts are due to be published in December 2026, which will include the assessment accuracy for 2025/26.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assessment they have made of the number of reported errors made by the Child Maintenance Service in 2025–26.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Child Maintenance Service (CMS) operates within the wider DWP Quality Strategy designed to prevent, detect, and correct errors at the earliest opportunity. Where payments have been made in error, the CMS has processes to refund overpayments to the paying parent and, where appropriate, to seek recovery from the receiving parent. Decisions on reimbursement are made on a case-by-case basis and the welfare of all children affected in any given case will be considered as part of making this decision.
In addition, the Department’s approach to accuracy and error is subject to independent scrutiny, including oversight by the National Audit Office, providing further assurance that robust controls are in place and that any issues are identified and acted upon promptly.
The Department remains committed to improving its systems and processes to reduce the likelihood of error, ensure payments are correct, and take swift action to resolve issues where they occur.
The Child Maintenance Service (CMS) measures assessment accuracy by comparing the total weekly monetary value of correct and incorrect maintenance calculations to produce an overall percentage of correctly assessed cases. For 2024/25, CMS Monetary Value Error (MVE) accuracy was 99.5%, unchanged from 2023/24, where accuracy was also 99.5%. This indicates that the overall level of accuracy in maintenance assessments has remained stable over this period.
The Child Maintenance Service (CMS) Client Fund Accounts are due to be published in December 2026, which will include the assessment accuracy for 2025/26.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what safeguards will be put in place to ensure that communications and promotional material relating to surplus release and endgame strategies are balanced, accurate and in the best interests of scheme beneficiaries.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Pension Schemes Act 2026 introduced reforms enabling more trustees of well-funded occupational Defined Benefit (DB) pension schemes to share surplus with the sponsoring employer and benefit members. Regulations will set out the conditions that trustees must meet before surplus can be released. These protections are designed to ensure that members’ promised benefits remain secure. The Department for Work and Pensions will consult on these draft regulations.
The Pensions Regulator (TPR) has published guidance to support trustees in making endgame decisions. TPR will consult on further guidance, on matters that trustees should consider when releasing surplus. Trustees will continue to act in accordance with their duties which require them to act in the interests of scheme beneficiaries, alongside fulfilling the clear standards for effective member communications, as is already overseen by TPR.
TPR’s 2024 survey of trust-based DB schemes indicated that around 62% of the schemes with a long-term objective intended to buy-out in the insurance market. Under the Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations 2024, trustees must set a funding and investment strategy determining how they plan to provide benefits over the long-term. The DB surplus changes allow trustees of all schemes the choice to be able to use surplus to benefit members and employers, but schemes are not required to release surplus.
The Impact Assessment for the Pension Schemes Act 2026 estimated that £11.2 billion of additional surplus funds are expected to be released over a 10-year period as a result of this legislative change, based on assumptions about take-up and behaviour. £160 billion is the total estimate of DB scheme surplus, for schemes in surplus estimated at September 2024. Actual levels of surplus release will depend on market conditions, individual scheme circumstances and trustee decisions.
TPR is an independent regulator responsible for determining how it deploys its resources to meet its statutory objectives. The Government keeps under review the implications for TPR of developments in the DB pensions landscape and for its resources.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assessment they have made of the additional resources or regulatory capacity required by the Pensions Regulator if more defined benefit pension schemes are expected to operate on a run-on basis for longer periods.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Pension Schemes Act 2026 introduced reforms enabling more trustees of well-funded occupational Defined Benefit (DB) pension schemes to share surplus with the sponsoring employer and benefit members. Regulations will set out the conditions that trustees must meet before surplus can be released. These protections are designed to ensure that members’ promised benefits remain secure. The Department for Work and Pensions will consult on these draft regulations.
The Pensions Regulator (TPR) has published guidance to support trustees in making endgame decisions. TPR will consult on further guidance, on matters that trustees should consider when releasing surplus. Trustees will continue to act in accordance with their duties which require them to act in the interests of scheme beneficiaries, alongside fulfilling the clear standards for effective member communications, as is already overseen by TPR.
TPR’s 2024 survey of trust-based DB schemes indicated that around 62% of the schemes with a long-term objective intended to buy-out in the insurance market. Under the Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations 2024, trustees must set a funding and investment strategy determining how they plan to provide benefits over the long-term. The DB surplus changes allow trustees of all schemes the choice to be able to use surplus to benefit members and employers, but schemes are not required to release surplus.
The Impact Assessment for the Pension Schemes Act 2026 estimated that £11.2 billion of additional surplus funds are expected to be released over a 10-year period as a result of this legislative change, based on assumptions about take-up and behaviour. £160 billion is the total estimate of DB scheme surplus, for schemes in surplus estimated at September 2024. Actual levels of surplus release will depend on market conditions, individual scheme circumstances and trustee decisions.
TPR is an independent regulator responsible for determining how it deploys its resources to meet its statutory objectives. The Government keeps under review the implications for TPR of developments in the DB pensions landscape and for its resources.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assessment they have made of the difference between the estimate of £160 billion in defined benefit pension scheme surplus in the press release published on 21 May 2025, Record pension scheme funding means up to £160 billion ready to boost growth, and the estimate in the impact assessment of the Pension Scheme Act 2026 that £11.2 billion will be released over 10 years.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Pension Schemes Act 2026 introduced reforms enabling more trustees of well-funded occupational Defined Benefit (DB) pension schemes to share surplus with the sponsoring employer and benefit members. Regulations will set out the conditions that trustees must meet before surplus can be released. These protections are designed to ensure that members’ promised benefits remain secure. The Department for Work and Pensions will consult on these draft regulations.
The Pensions Regulator (TPR) has published guidance to support trustees in making endgame decisions. TPR will consult on further guidance, on matters that trustees should consider when releasing surplus. Trustees will continue to act in accordance with their duties which require them to act in the interests of scheme beneficiaries, alongside fulfilling the clear standards for effective member communications, as is already overseen by TPR.
TPR’s 2024 survey of trust-based DB schemes indicated that around 62% of the schemes with a long-term objective intended to buy-out in the insurance market. Under the Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations 2024, trustees must set a funding and investment strategy determining how they plan to provide benefits over the long-term. The DB surplus changes allow trustees of all schemes the choice to be able to use surplus to benefit members and employers, but schemes are not required to release surplus.
The Impact Assessment for the Pension Schemes Act 2026 estimated that £11.2 billion of additional surplus funds are expected to be released over a 10-year period as a result of this legislative change, based on assumptions about take-up and behaviour. £160 billion is the total estimate of DB scheme surplus, for schemes in surplus estimated at September 2024. Actual levels of surplus release will depend on market conditions, individual scheme circumstances and trustee decisions.
TPR is an independent regulator responsible for determining how it deploys its resources to meet its statutory objectives. The Government keeps under review the implications for TPR of developments in the DB pensions landscape and for its resources.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government, further to the press release Record pension scheme funding means up to £160 billion ready to boost growth, published on 21 May 2025, what assessment they have made of the likelihood that £160 billion in defined benefit pension scheme surplus will be released.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Pension Schemes Act 2026 introduced reforms enabling more trustees of well-funded occupational Defined Benefit (DB) pension schemes to share surplus with the sponsoring employer and benefit members. Regulations will set out the conditions that trustees must meet before surplus can be released. These protections are designed to ensure that members’ promised benefits remain secure. The Department for Work and Pensions will consult on these draft regulations.
The Pensions Regulator (TPR) has published guidance to support trustees in making endgame decisions. TPR will consult on further guidance, on matters that trustees should consider when releasing surplus. Trustees will continue to act in accordance with their duties which require them to act in the interests of scheme beneficiaries, alongside fulfilling the clear standards for effective member communications, as is already overseen by TPR.
TPR’s 2024 survey of trust-based DB schemes indicated that around 62% of the schemes with a long-term objective intended to buy-out in the insurance market. Under the Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations 2024, trustees must set a funding and investment strategy determining how they plan to provide benefits over the long-term. The DB surplus changes allow trustees of all schemes the choice to be able to use surplus to benefit members and employers, but schemes are not required to release surplus.
The Impact Assessment for the Pension Schemes Act 2026 estimated that £11.2 billion of additional surplus funds are expected to be released over a 10-year period as a result of this legislative change, based on assumptions about take-up and behaviour. £160 billion is the total estimate of DB scheme surplus, for schemes in surplus estimated at September 2024. Actual levels of surplus release will depend on market conditions, individual scheme circumstances and trustee decisions.
TPR is an independent regulator responsible for determining how it deploys its resources to meet its statutory objectives. The Government keeps under review the implications for TPR of developments in the DB pensions landscape and for its resources.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assessment they have made of the preference among trustee boards for buyout strategies, and how that preference may limit the level of defined benefit pension scheme surplus release.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Pension Schemes Act 2026 introduced reforms enabling more trustees of well-funded occupational Defined Benefit (DB) pension schemes to share surplus with the sponsoring employer and benefit members. Regulations will set out the conditions that trustees must meet before surplus can be released. These protections are designed to ensure that members’ promised benefits remain secure. The Department for Work and Pensions will consult on these draft regulations.
The Pensions Regulator (TPR) has published guidance to support trustees in making endgame decisions. TPR will consult on further guidance, on matters that trustees should consider when releasing surplus. Trustees will continue to act in accordance with their duties which require them to act in the interests of scheme beneficiaries, alongside fulfilling the clear standards for effective member communications, as is already overseen by TPR.
TPR’s 2024 survey of trust-based DB schemes indicated that around 62% of the schemes with a long-term objective intended to buy-out in the insurance market. Under the Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations 2024, trustees must set a funding and investment strategy determining how they plan to provide benefits over the long-term. The DB surplus changes allow trustees of all schemes the choice to be able to use surplus to benefit members and employers, but schemes are not required to release surplus.
The Impact Assessment for the Pension Schemes Act 2026 estimated that £11.2 billion of additional surplus funds are expected to be released over a 10-year period as a result of this legislative change, based on assumptions about take-up and behaviour. £160 billion is the total estimate of DB scheme surplus, for schemes in surplus estimated at September 2024. Actual levels of surplus release will depend on market conditions, individual scheme circumstances and trustee decisions.
TPR is an independent regulator responsible for determining how it deploys its resources to meet its statutory objectives. The Government keeps under review the implications for TPR of developments in the DB pensions landscape and for its resources.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government whether the Child Maintenance Service has effective measures in place to identify payments taken in error and return monies swiftly.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Child Maintenance Service (CMS) operates within the wider DWP Quality Strategy designed to prevent, detect, and correct errors at the earliest opportunity. Where payments have been made in error, the CMS has processes to refund overpayments to the paying parent and, where appropriate, to seek recovery from the receiving parent. Decisions on reimbursement are made on a case-by-case basis and the welfare of all children affected in any given case will be considered as part of making this decision.
In addition, the Department’s approach to accuracy and error is subject to independent scrutiny, including oversight by the National Audit Office, providing further assurance that robust controls are in place and that any issues are identified and acted upon promptly.
The Department remains committed to improving its systems and processes to reduce the likelihood of error, ensure payments are correct, and take swift action to resolve issues where they occur.
The Child Maintenance Service (CMS) measures assessment accuracy by comparing the total weekly monetary value of correct and incorrect maintenance calculations to produce an overall percentage of correctly assessed cases. For 2024/25, CMS Monetary Value Error (MVE) accuracy was 99.5%, unchanged from 2023/24, where accuracy was also 99.5%. This indicates that the overall level of accuracy in maintenance assessments has remained stable over this period.
The Child Maintenance Service (CMS) Client Fund Accounts are due to be published in December 2026, which will include the assessment accuracy for 2025/26.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assessment they have made of the relationship between pension scheme size and member investment outcomes in defined contribution workplace pension schemes.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
Evidence suggests there are a range of benefits to schemes achieving a greater level of scale through greater assets under management. This includes better governance, economies of scale, increased diversification of assets and improved bargaining power.
A growing number of research papers and evidence suggest a greater number of benefits can arise at £25 billion to £50 billion (or greater) of assets under management, as set out in the Department for Work and Pensions’ November 2024 publication “Pension fund investment and the UK economy” paper. The report can be found here: Pension fund investment and the UK economy - GOV.UK. Increased net returns via lower charges for members and higher net investment returns through diversification, both evidenced as being more possible through scale, can be expected to drive improved member outcomes. This evidence is set out in the Pension Schemes Act Impact Assessment published in December 2025. The Impact Assessment can be found here: Impact Assessment.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assessment they have made of the extent to which investment strategy and asset allocation determine saver outcomes for pension schemes compared to the overall pension scheme scale.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Impact Assessment published alongside the Pension Schemes Act 2026 sets out that increasing scale in defined contribution pension schemes is expected to improve outcomes for savers. It finds that larger schemes are better able to benefit from economies of scale, including lower costs, stronger governance, and improved access to a wider range of investment opportunities and asset classes.
Evidence shows that investment strategy and asset allocation can have a significant impact on return. For example, industry data (Corporate Advisor) indicates that annualised returns for younger savers can vary by over eight percentage points across the market, partly reflecting differences in asset allocation and investment strategies. This highlights the role that scale can play in enabling schemes to access a broader range of investments and adopt more diversified, investment approaches. Taken together, these factors are expected to improve net investment returns over the long term and deliver better value for money for members, although outcomes will depend on market conditions and investment decisions.
The reforms outlined in the Pension Schemes Act 2026 are therefore intended to support the development of fewer, larger, and better‑run schemes capable of delivering improved retirement outcomes for savers. The government has estimated that these reforms could increase retirement outcomes by up to around £29,000 for an average earner over their lifetime.