Committee publication · Estimate memoranda · 29 April 2026
NHS Pension scheme Main Estimate Memo 2026/27
Summary
The NHS Pension Scheme Main Estimate for 2026-27 seeks £13,576.8m in Resource Annually Managed Expenditure (AME), a 12.7% decrease from the previous year. The reduction is driven primarily by a lower current service cost (down £2,135.6m due to GAD setting the cost at 19.5% versus 22.7%), partly offset by increased interest charges from higher discount rates and higher contribution income from pay settlements.
Key findings
- Resource AME sought is £13,576.8m, down £1,975.9m (12.7%) from 2025-26 Supplementary Estimate, primarily due to reduced current service cost of £2,135.6m
- Net Cash Requirement is negative £8,415.2m (surplus cash to HMT), representing a £1,912.3m improvement driven by increased contribution income of £721.7m and decreased payments of £602.2m
- Current service cost percentage set by Government Actuary Department at 19.5% for 2026-27, down from 22.7% in 2025-26, with long-term downward trend from 82.0% in 2022-23
- Scheme liabilities valued at £457.2bn as at 31 March 2025, covering 1.8m active members, 0.7m deferred members, and 1.1m pensioners
- Administration costs increased by £3.0m to £110.0m; 2024 actuarial valuation in preparation for new contribution rates from April 2027
Tone
ProceduralTopics
public-financepensionshealth-employmentactuarial-valuationbudget-planning
Key actors
NHS Pension Scheme, NHS Business Service Authority, Government Actuary Department, Secretary of State for Health and Social Care, HM Treasury, Michael Brodie
Key Quotes
“The NHSPS budgets are not subject to pre -set D epartmental Expenditure Limit (DEL) control totals; they sit within a category of spending known as Resource Annually Managed Expenditure (AME), which can be revised and reforecast regularly.”
“The Resource AME sought under the NHSPS Estimate is essentially the amount by which liabilities under the Pension Scheme are estimated to increase during the year, less the contributions paid by employers and employees towards those liabilities.”
“GAD provided the CSC for 2026- 27 (calculated as a percentage of total pensionable pay) as 19.5% , compare d to the rate set for 2025-26 at Supplementary Estimate of 22.7%.”
Source · parliament.uk record ↗