The UK Government has announced significant reforms to the Local Government Pension Scheme (LGPS), aimed at tackling the long-standing gender pension gap. With changes coming into effect from April 2026, this update will directly impact millions of members – many of them women working in frontline public service roles.
For employers across Cornwall, this is an important development to understand and prepare for.
Why these changes matter
The LGPS covers nearly seven million members across England and Wales, around three-quarters of whom are women. Many work in essential roles such as school meal providers, cleaners, librarians and street teams.
Historically, one of the biggest contributors to the gender pension gap has been maternity and related leave. Periods of unpaid additional maternity leave have not counted towards pension accrual – meaning time taken to care for a child could reduce long-term retirement income.
From April 2026, that changes.
What’s changing?
Key reforms include:
✔ Unpaid additional maternity, shared parental and adoption leave will become automatically pensionable.
This ensures caring responsibilities no longer reduce future pension benefits.
✔ Gender pension gap reporting will be placed on a statutory footing.
This introduces greater transparency and accountability within the scheme.
✔ Survivor benefit inequalities will be removed.
Past inconsistencies affecting opposite-sex and same-sex partners will be corrected through backdated payments and future adjustments.
✔ Removal of the age 75 cap on lump-sum death grants.
Survivors will receive broader financial protection.
As Pensions Minister Torsten Bell stated, these reforms aim to ensure women are no longer penalised in retirement for taking time out to have children.
For LGPS employers in Cornwall, preparation will be key.
You may need to:
- Review how maternity and parental leave is processed
- Ensure payroll systems are ready for pensionable unpaid leave
- Communicate changes clearly to employees
- Monitor updates to reporting requirements
Accurate payroll administration will play a crucial role in ensuring employees receive the pension benefits they’re entitled to. At Pixie Payroll, we understand how important it is to stay ahead of legislative changes, especially those that affect financial security in retirement.