As hon. Members are aware some of the administrative resource costs of the pensions regulator (tPR), the Pension Protection Fund (PPF), the Pensions Advisory Service (TPAS) and the pensions ombudsman (PO) are recovered through levies raised on pension schemes. The rates for these levies are set in regulations.

The PPF administration levy recovers the administration costs of the board of the PPF only in relation to its PPF activities. Any administration costs in relation to PPF’s financial assistance scheme responsibilities are funded separately and there is no cross-subsidy from the PPF levy.

The general levy provides for some of the administration costs of tPR and those of TPAS and the PO. Activities the regulator is undertaking in relation to the employer compliance regime are not met from the general levy and are funded separately. There is no cross-subsidy between the two funding sources.

I am pleased to announce that for 2010-11 we will continue to freeze the rates for both the PPF administration levy and the general levy at the same levels set for 2008-09.

This will be the third year that we have kept rates stable and delivers on the Government’s intention to provide levy cost stability for pension schemes.