The government has announced its intention to consolidate the Payment Systems Regulator (PSR) and its functions, primarily within the Financial Conduct Authority (FCA). The Economic Secretary to the Treasury, Emma Reynolds MP, has written to the Treasury Committee to provide further detail on the announcement. The Financial Conduct Authority (FCA) has published a statement from Nikhil Rathi, its chief executive, in response. The government intends to consolidate the PSR into the FCA to streamline the regulatory environment, reduce overlap, and allow businesses to focus on innovation and service delivery. The government plans to consult on the details of the proposal and legislate accordingly. In the interim, the PSR and FCA plan to collaborate closely. The PSR has acknowledged the government's commitment to effective regulation and has expressed readiness to work with the government, the FCA, and the Bank of England (BoE) to ensure a smooth transition.

The UK Government has announced the opening of a consultation around significant planned reforms to the requirements for obtaining settlement in the UK, and their replacement with an ‘earned settlement’ system. The standard period for obtaining settlement will no longer be five years, and there would be significant changes to the qualifying requirements, period, and conditions under which migrants can obtain indefinite leave to remain. This initial analysis summarises the key proposed changes.

The Department for Business Trade has published a policy paper on the UK’s Modern Industrial Strategy, which includes certain comments about the role of competition policy and the works of the Competition and Markets Authority (CMA).   Within the policy paper, the government also announced the launch of a 12-week consultation on updating the list of 17 sensitive sectors where notification is mandatory and suspensory under the National Security and Investment Act (NSIA) 2021. The aim of doing so is to make the regulatory requirements targeted and proportionate. Further, the government will shortly announce ‘specific new exemptions’ to the mandatory regime and consider other reforms.

The Office for Equality and Opportunity has opened a consultation on how to introduce mandatory ethnicity and disability pay reporting for large employers (those with 250 or more employees). Responses to the consultation will help to shape proposals which will be included in the upcoming Equality (Race and Disability) Bill, which was announced in the King’s Speech in July 2024. The consultation runs from 18 March 2025 to 11.59 on 10 June 2025

Pensions analysis: The UK government has announced a consultation on a range of proposals relating to the Local Government Pension Scheme (LGPS) in England and Wales, including an increase to the Normal Minimum Pension Age (NMPA) and the extension of the scheme to mayors and councillors. Written by James Smith, barrister at Outer Temple Chambers.

Law360: The government announced on 9 May 2025 that the Wales Pension Partnership is set to become the largest Welsh pension fund by pooling £25bn pension assets as part of the government’s ‘Plan for Change’. The Wales Pension Partnership is designed to access the full potential of the Local Government Pension Scheme (LGPS) as a driver of economic growth across Wales.

The Ministry of Justice and Home Office have announced that enhanced parole provisions for national security offenders came into force on 22 March 2026 under the Sentencing Act 2026 (SA 2026). Offenders convicted of espionage, sabotage, or foreign interference must now serve at least two-thirds of their custodial term—up from 50%—before becoming eligible for a Parole Board assessment. The measures eliminate automatic release for national security offenses and require a mandatory Parole Board risk assessment for any release decision. Upon release, offenders will be subject to enhanced monitoring conditions, including tagging until the end of their sentence plus an additional year.

The Department for Levelling Up, Housing and Communities (DLUHC) has announced that the government intends to bring forward legislation to ensure that new non-domestic buildings provide separate single-sex toilets. The new legislation will allow for the installation of self-contained universal toilets in addition to the single-sex toilets, however where there is insufficient space for both, single-sex toilets must be used as the default.

The Prime Minister’s Office has announced the creation of four new government departments. These departments include, the Department for Energy Security and Net Zero, which is created to secure a long-term energy supply; the Department for Science, Innovation and Technology, which will be focused on turning scientific and technical innovations into practical, appliable solutions; the Department for Business and Trade to support growth, promote investment and champion the free trade of British businesses; and a re-focused Department for Culture, Media and Sport to help make the UK a global leader in the creative arts. His Majesty the King has given his approval for the new departments, as well as to the appointment of ministers.

The government has announced a further tranche of decisions on local government reorganisation in England, following earlier announcements affecting Surrey, Essex, Hampshire and Norfolk.

Secretary of State for Environment Food and Rural Affairs, Steve Reed, has announced a series of initial steps towards ending the crisis in the water sector. These steps are aimed at ensuring that the water industry cuts illegal sewage dumping, attracts private-sector investment to upgrade infrastructure and prioritises the interests of customers and the environment.

In the 8th sitting of the Public Bill Committee held on 11 September 2025, Pensions Minister Torsten Bell announced that the government intends to lay amendments to the Pension Schemes Bill that will abolish the Pension Protection Fund administration levy. These amendments, which were previously called for by various members of the industry (including Pensions UK), will be laid ‘at a later stage’, according to Torsten Bell.