Joint proposals published for pension value for money framework

The Financial Conduct Authority, the Department for Work and Pensions and The Pensions Regulator announced joint proposals on 8 January 2026 that would require pension schemes to publish clear data on their performance, costs and quality of service¹. Where a pension offers poor value, firms and trustees would have to fix it, by moving savers to better schemes or driving improvements¹.

Value for money assessment outcomes would be shown in a colour rating: dark green for strong performance, light green for good value, amber for improvement, and red for poor value¹. The proposals also set out stronger governance with clear expectations for trustees and providers, and measures for fixing poor-value arrangements, including telling the regulators and limiting new members joining¹. They build on feedback from last year's consultation and add measures showing what returns and risks savers can expect over the next 10 years¹.

The framework would apply differently depending on scheme type. The FCA regulates contract-based pensions, which involve a contract between an individual and the pension provider, and FCA rules would introduce the framework for those schemes¹. TPR regulates trust-based pension schemes, which have a board of trustees overseeing the scheme, and the Pension Schemes Bill 2025, currently progressing through Parliament, includes the legislative powers to mandate a value for money framework for trust-based schemes¹.

The announcement cites figures on the difference value for money makes. Over 16 million workers have defined contribution (DC) pensions¹. Over five years, a £10,000 pot could grow to £10,400 in a poor scheme or £15,100 in a high-performing one, which the announcement describes as 46% more¹.

Source: The Pensions Regulator, 8 January 2026¹

Why it matters for households

The proposals cover workplace pensions where savers hold defined contribution pots, a group the announcement puts at over 16 million workers¹. Under the plans, the performance, costs and service quality of a scheme would be published, and its value for money outcome shown as a colour rating, so that savers could see how a scheme is assessed rather than relying on cost alone¹. The FCA's Sarah Pritchard said good value "isn't just about low costs, it's about strong performance, good service, and transparency"¹. Where a scheme is rated poor value, the firms and trustees running it would be required to fix it, including by moving savers to better schemes, telling the regulators and limiting new members joining¹. The framework would cover both contract-based schemes, regulated by the FCA, and trust-based schemes, regulated by TPR, once the necessary powers are in place¹. The timing of the framework is subject to legislative agreement¹.

What happens next

The joint proposals are open for comment until 8 March¹. Final rules will only be confirmed once responses have been considered, and are subject to the Pension Schemes Bill receiving Royal Assent¹. The government's Pension Schemes Bill 2025 is currently progressing through Parliament¹. The framework is one of a number of joint initiatives intended to deliver better outcomes for pension savers, alongside targeted support and the pensions dashboard¹. Further detail on the wider programme is set out in our guide to pension reforms in progress.