The rate of the PPF administration levy will rise from 1 April 2015 as part of a series of increases over the next three years, and the relevant regulations were laid before Parliament on 4 February 2015. The Government's consultation response has confirmed that the levy rate will increase by 15 per cent in 2015/16, with identical increases in 2016/17 and 2017/18.
The DWP estimates that these increases will eliminate the deficit by 31 March 2022. The administration levy funds the day-to-day administration costs of the PPF and is paid by eligible schemes, according to the number of scheme members. The rates of the PPF administration levy are set out in regulations, which are regularly reviewed, and the levy is collected annually by the Pensions Regulator on behalf of the DWP.