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

In this 7 Days

Data (Use and Access) Act 2025 becomes law

The Data (Use and Access) Act 2025 received Royal Assent on 19 June 2025. It updates key aspects of data protection law, including around automated decision making, data protection complaints procedures and data transfers. It also provides the ICO with new powers, including the ability to compel witnesses to attend interviews and to request technical reports.

Most of the provisions of the Act will come into force under secondary legislation, but a limited number of provisions came into force immediately, including that, in responding to data subject access requests, controllers are only required to undertake “reasonable and proportionate” searches for personal data.

The ICO has published a suite of guidance to support organisations and the public.

HMRC revises policy on VAT deduction on pension fund management costs

HMRC has published a policy paper announcing a policy change to VAT deduction on the management of pension funds. From 18 June 2025, employers can claim back all the VAT on investment costs linked to pension funds, and no longer need to split the costs with trustees. If trustees are providing pension fund management services and charging the employer, they can also claim back VAT on their costs if they are VAT-registered. Both must still follow the usual VAT rules.

TPR urges trustees to get ready for the Pension Schemes Bill

TPR has said that trustees should take practical steps now to prepare for the Pension Schemes Bill. In his speech on 18 June 2025, Patrick Coyne, TPR’s Interim Director of Policy and Public Affairs, outlined four themes in the Bill for the DC market, and set out steps that trustees should take in relation to those themes:

  • be saver outcome focused – consider their investment strategy and challenge advisers to provide suitable insights and commentary on performance
  • build scale – work through practical steps to consolidate if needed in the interest of savers and, if already at scale, consider new investment opportunities
  • be data-led and accountable – consider investment in digital infrastructure to ensure high data quality, and
  • innovate at retirement – start discussions about decumulation products and services and use TPR’s innovation support service to discuss early ideas.

TPR’s innovation support service holds “innovation hackathon”

TPR’s Head of Innovation and Design Practice, Marion Lean, has published a blog on the innovation support service’s first event, an “innovation hackathon”. The event took place on 4 June 2025 and brought together pensions professionals, service designers, and fintech founders to “develop answers” to a broad range of issues including decumulation, financial literacy, supporting self-employed people, improving administration and member experience, and promoting ESG principles.

TPO’s Pensions Dishonesty Unit pilot ends

TPO has announced that its pilot Pensions Dishonesty Unit, which investigated allegations of serious breaches of trust, misappropriation of pension funds and dishonest or fraudulent behaviour, has ended following the loss of funding from the Government. Funding ended on 31 March 2025 with run-off funds available until October 2025 to complete specific investigations. However, TPO may, in the future, still decide to investigate a specific case in a scheme where there is no prospect of alternative redress, where there is a reasonable likelihood of redress and/or there is a novel legal issue or different type of scam involved.

TPO appoints new chair

On 19 June 2025, the DWP announced the appointment of Deborah Evans as TPO’s new Chair for a five-year term, taking effect from 1 July 2025. She will replace Anthony Arter who has been the interim Chair since January 2024.

Sackers News

Partner Tom Jackman joins the panel for the PLSA’s Policy Insights Webinar on the Pensions Schemes Bill on Thursday 26 June. Find out more and register here.