Law360: The government must consider the potential administrative burden of sweeping reforms to the £400bn Local Government Pension Scheme (LGPS), the Society of Pension Professionals (SPP) has warned.

The Scheme Advisory Board (SAB) of the Local Government Pension Scheme (LGPS) in England and Wales has published its submission to the call for evidence on the government’s Pensions Investment Review which ran between 4 - 25 September 2024. SAB’s submission covers questions on LGPS asset pooling, government intervention to encourage pension schemes to widen asset classes, LGPS consolidation to increase investment in UK assets and government incentivisation. SAB said that it has had meetings with the Local Government Minister, Jim McMahon, and the Pensions Minister leading the review, Emma Reynolds.  The government has reassured SAB that there will be extensive engagement with it and other stakeholders beyond the call for evidence itself.

The Local Government Pension Scheme (LGPS) Scheme Advisory Board has issued a statement responding to the Ministry of Housing, Communities and Local Government's (MHCLG)’s consultation outcome on LGPS reforms. While welcoming clarity on the government’s reform direction and commitment to Good Governance recommendations, the Board highlighted concerns over the scale and pace of the proposed changes which it says carry significant risks if not managed with care. The reforms require funds to transfer all assets to pool management by March 2026, with pools becoming Financial Conduct Authority regulated investment companies. The Board emphasised implementation challenges coinciding with the 2025 triennial valuation, McCloud remedy and Pensions Dashboard preparations.

Pensions analysis: The Local Government Pension Scheme’s Scheme Advisory Board (SAB) has broadly supported the Pensions Regulator’s (TPR) proposed new enforcement strategy, but has also called for greater transparency, clarity on its application to the Local Government Pension Scheme (LGPS), and a continued emphasis on support and education before enforcement.

Pensions analysis: The government has confirmed the regulatory framework for the Local Government Pension Scheme (LGPS) ‘Fit for the Future’ reforms in England and Wales. The reforms represent a major reshaping of the investment and governance framework for administering authorities and asset pools. The final regulations largely deliver the original policy direction which in investment terms includes greater consolidation through pooling, delegation of investment implementation to pools and new local investments requirements. On the governance front there are stronger expectations, including senior LGPS officer appointments, independent persons, mandatory knowledge and understanding for pension committee members and triennial independent governance reviews. There are some helpful changes to implementation timing and detail, but many practical challenges remain. The immediate task for funds is understanding the new duties, aligning governance and investment strategy processes, strengthening pool oversight and ensuring that decisions remain focused on the best interests of members and employers. Written by Ian Colvin, Principal Consultant, Hymans Robertson LLP.

The Local Government Pension Scheme Advisory Board (LGPSAB) has responded to the Local Government Minister’s letter to all Local Government Pension Scheme funds in England which was sent on 15 May 2024. LGPSAB encourages funds to send a response directed to the officials at the Department for Levelling Up, Housing and Communities pensions team to assist them with briefing new ministers post-election. LGPSAB has issued a statement and drafted some suggested text for funds to include in their response.

The Local Government Pension Scheme Advisory Board (LGPSAB) has published its Annual Report 2023, the eleventh of its kind. The report provides information about the status of the LGPS, the largest direct benefit scheme in England and Wales, for its 6.49 million members. Key takeaways from the report include an increase in membership by 1.6%, a decrease in total assets by 2.6% to £354bn, and a reduction in investment return of 1.8%.

Pensions analysis: Building on the government’s wider Make Work Pay agenda, there are a number of reforms to the Local Government Pension Scheme (LGPS) that are currently being consulted on that could help reduce discrimination and lead to better outcomes for members. Written by David Gallagher, partner & head of Pensions, and Daniel Fowler, director, at Fieldfisher.

The Ministry of Housing, Communities and Local Government (MHCLG) has announced a ‘rapid review’ of the government’s local government reorganisation (LGR) programme. Secretary of State for Housing, Communities and Local Government, Angela Rayner, confirmed that, following updated privileged legal advice received as part of the judicial review process, the March 2026 decisions for Essex, Southend-on-Sea and Thurrock; Hampshire, Isle of Wight, Portsmouth and Southampton; Norfolk; and Suffolk have been withdrawn. Minister for Local Government, Devolution and Regional Growth, Jim McMahon, will lead the review, which also includes the decisions for 14 areas made in July 2026. The Government has asked councils and their partners to cease implementation work pending the review. Cambridgeshire and Peterborough and West Sussex, where decisions have not yet been taken, will also be considered. East Surrey and West Surrey are unaffected, as the new councils are already established in law, and local elections in May 2027 will proceed on existing council boundaries (unless new unitary councils are in place). The review is linked to the government’s wider plans for rewiring the state, which aim for every area in England to have, or be in the process of establishing, a strategic authority by the end of 2027, with strategic authorities in place by the end of 2028. A White Paper, to be published this autumn, will set out the wider reforms and implementation timetable. Reponses to the announcement have been mixed. Some councils have publicly welcomed the LGR review, alongside calls for further detail. The Local Government Association (LGA) has criticised the handling of the programme and called for greater certainty.

The Local Government and Social Care Ombudsman (LGSCO) has announced the appointment of Julie Odams as its new Chief Executive Officer, effective from May 2025. Odams, who currently serves as Head of Policy and Communications within the LGSCO's Executive Team, will succeed retiring CEO Nigel Ellis following an open recruitment process overseen by the Ombudsman's Board and the Ministry for Housing, Communities and Local Government. The appointment, which combines both CEO and Accounting Officer responsibilities, comes at a strategic time for local government and social care oversight. Odams brings substantial experience from her previous roles in local government communications and stakeholder engagement, having joined the LGSCO in 2023 from her position as Assistant Director of Communications & Customers at Derbyshire County Council.

The Local Government and Social Care Ombudsman (LGSCO) has censured Leicester City Council for declining to fully implement its recommendations following an investigation into the council's handling of a homeless family fleeing domestic abuse. The council failed to provide adequate support, placed the family in bed and breakfast accommodation for 19 weeks (exceeding the legal six week limit) and neglected to inform them of their right to appeal unsuitable housing offers. While the council agreed to some service improvements, it refused the Ombudsman's recommendation to pay £1,300 in compensation for distress caused by prolonged unsuitable accommodation, as well as ongoing monthly payments. The Ombudsman expressed disappointment at the council's reluctance to fully acknowledge its failings and the resulting injustice to the family.

The Local Government and Social Care Ombudsman (LGSCO) has reported that Worcestershire County Council, through its company Worcestershire Children First, failed a looked after a child with special educational needs. LGSCO's investigation revealed that the child missed over five terms of education and two years of necessary therapy due to the council's inadequate understanding of the special educational needs and disability (SEND) system. The council exceeded statutory timelines for updating the child's Education, Health and Care (EHC) Plan by more than a year and demonstrated a lack of basic knowledge regarding their powers to name specific schools in the plan. The Ombudsman has ordered the council to pay £11,060 in compensation and to review staff training to address the systemic issues identified in the report.