Charge cap will cost insurance industry £1bn, claims Royal London

Stephanie Baxter
clock

The government has grossly underestimated the impact on providers of the pension charge cap by about £800m, says Royal London.

The firm predicted the 0.75% cap would reduce long-term insurance income by around £1bn over the next 10 years in its half-yearly report, published today. The figure is five times the £200m estimat...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Law and Regulation

Will pension firms become subject to a robot tax?

Will pension firms become subject to a robot tax?

Matthew Giles looks at how taxing the ‘labour’ performed by AI would impact pensions

Matthew Giles
clock 18 June 2026 • 3 min read
Pitfalls with privilege – Ensuring trustees don't stumble at the final hurdle

Pitfalls with privilege – Ensuring trustees don't stumble at the final hurdle

Chris Edwards-Earl looks at issues around privilege in Virgin Media solutions

Chris Edwards-Earl
clock 17 June 2026 • 3 min read
Government to review FAA rules following Stagecoach deal with Aberdeen

Government to review FAA rules following Stagecoach deal with Aberdeen

Minister says transaction complied with rules in a way not anticipated when they were set

Jonathan Stapleton
clock 16 June 2026 • 3 min read
Trustpilot