The government has confirmed that the mandatory scheme pays deadline will be pushed back to 6 July 2027, bringing it in line with the deadline for pensioner members. The decision has been welcomed across the industry as a pragmatic step that provides greater clarity for savers.
HMRC’s latest Pension Schemes Newsletter revealed that some schemes are still in the process of issuing statements linked to the public service pension remedy. To prevent members from being disadvantaged by these delays, ministers have agreed to extend the mandatory scheme pays deadline by two years.
The change applies to all members who have already submitted a scheme pays election to HMRC under the public service pensions remedy for the tax years 2019/20 through to 2022/23, but who missed the original 6 July 2025 deadline. HMRC has confirmed that the new date will be recognised as mandatory and will be formalised in its next set of regulations.
Although formal guidance will only be updated once the regulations are in force, HMRC said HM Treasury has already approved the extension and that the industry should treat the deadline as 6 July 2027 with immediate effect.
Commenting on the move, Rob Beck, Senior Medical Financial Planner at Capstone Financial, said: “This is a very welcome and pragmatic decision. With many public service schemes still navigating the complex process of issuing revised pension input statements due to the McCloud remedy, this extension ensures members won’t be unfairly penalised if they were unable to meet the original deadline.”
He added: “The revised deadline also prevents unnecessary two-tier outcomes and gives members a fair chance to use scheme pays to settle annual allowance tax charges without needing to fund large payments themselves. That said, while this delay offers valuable breathing space, members should still seek advice from their accountant, financial adviser or NHS pension specialist. It’s important not to leave things until the last moment to avoid mistakes or missed opportunities.”
The government has also said that progress is being made in issuing remedial service statements (RSSs). In the police pension scheme across England and Wales, around 90 per cent of RSSs have now been delivered, with “significant progress” reported in other schemes as well.
Addressing concerns over delays, Economic Secretary to the Treasury Emma Reynolds highlighted the scale of the task, describing the remedy process for more than three million affected members as “an intensive administrative challenge.” She reassured members that any arrears resulting from delayed payments will include interest, ensuring individuals are not left financially disadvantaged.