7 Days is a weekly round up of developments in pensions, normally published on Monday mornings. We collate this information from key industry sources, such as the DWP, HMRC and TPR.

In this 7 Days

TPR publishes Annual Funding Statement

On 6 May 2026, TPR published its latest annual funding statement and accompanying analysis. The statement is particularly relevant for schemes with valuation dates between 22 September 2025 and 21 September 2026, referred to as “Tranche 25/26” or “T25/26”. However, it is also relevant to all DB schemes as it captures key information relating to the DB funding code of practice.

TPR reports that 60% of schemes are in surplus on a buy-out basis, rising to 80% on a TPR-derived low dependency basis and 90% on a technical provisions (“TPs”) basis. Echoing last year’s messaging, with most schemes now in surplus, TPR expects trustees in Tranche 25/26 to be shifting their focus from deficit recovery to long-term endgame planning.

While the overall picture is positive, trustees are reminded to “remain alert to wider economic and geopolitical uncertainty. Understanding the risks to investment strategies and employer covenants remains essential, particularly as schemes move closer to their long-term objectives”. See our Alert for further details.

TPR review on DC consolidation and economies of scale

On 7 May 2026, TPR published a report which brings together evidence on the emerging benefits of scale arising from the consolidation of small DC schemes into master trusts. It builds on the DWP analysis of pension fund investment and the UK economy and TPR’s DC landscape analysis. In the report, TPR also explores the links between scale, governance capability and access to private market investment.

TPR speech – “Looking Ahead to 2026: The future of UK Workplace Pensions”

In a speech published on 6 May 2026, Nausicaa Delfas, TPR’s CEO, set out her vision for how the workplace pensions landscape could change by 2036, stressing that it could look “very different” with more people on track for a secure retirement, more value for members, well-structured default pensions, and greater transparency for members.

Ms Delfas highlighted that megafunds “will not simply be larger versions of today’s schemes” but will operate as “long-term institutional investors, with deep governance benches, in-house investment capability, strong administration and the scale to invest directly, negotiate effectively, and withstand market stress”.

TPO corporate plan 2026/27

On 5 May 2026, TPO published its Corporate Plan for 2026/27, highlighting recent progress and announcing a new three-year funding settlement from the DWP which will allow TPO to invest in its frontline casework teams for the long-term.

However, TPO notes that “even with new investment and continued efficiency improvements, reducing the backlog will take time”. To manage this, TPO is looking to invest in technology to help caseworkers progress cases more quickly but with decision making remaining “grounded in the professional judgement and expertise of TPO’s caseworkers and ultimately the Ombudsman”.