The Pension Protection Fund (PPF) has set the 2007/08 levy scaling factor at 2.47. It is estimated that a total of £675 million will need to be collected by PPF in this financial year and the purpose of the levy scaling factor is to ensure that the amount actually collected is as close to this figure as possible.

The levy is split so that 20 per cent is based on the scheme’s PPF liabilities and 80 per cent is a risk based levy. The invoices based on the new scaling factor will be issued from summer 2007.