Tower Hamlets Council is considering extending access to the Local Government Pension Scheme (LGPS) to elected councillors and mayors in England. The proposal aims to align England with Wales, Scotland and Northern Ireland, where councillors and mayors already have access to the scheme.
The Tower Hamlets Pension Board discussed the government's consultation on proposed changes to the LGPS at a meeting on Monday, 24 November 2025. The LGPS Access and Protections Consultation, launched by the Ministry of Housing, Communities and Local Government (MHCLG) on 13 October 2025, includes proposals for amendments in four key policy areas.
According to the consultation, councillors and mayors elected after a specified implementation date would be allowed to join the Scheme on an opt-in basis. While the exact date is not specified in the consultation, it does outline transitional provisions for individuals who previously had access before 2014.
The report considered by the board summarised the proposals, assessed their implications for the Tower Hamlets Pension Fund and participating employers, and outlined recommended actions for the Pensions Committee.
The board also discussed the potential impact of the proposals on the council's administration and resources. Concerns were raised about the increased administrative complexity and the potential impact on staffing. The report notes that extending LGPS access would require updates to administration systems to distinguish this new employment category, as well as updates to communications and employer guidance.
John Jones, Independent Chair of the board, noted the potential for increased administrative complexity. Other board members echoed these concerns, highlighting the need for careful consideration of the resource implications.
The board agreed to the recommendations as they were, noting the board's comments. The recommendations will now be considered by the Pensions Committee.
