HM Treasury has updated the Treasury Directions for the Public Service Pensions and Judicial Offices Act 2022 regarding the McCloud remedy.

The act provides a remedy for public service pension scheme members affected by discrimination that arose when public service pension reforms were introduced in 2015.

Treasury Directions specify how powers under the act are to be used by public service pension schemes.

HM Treasury said the 2025 directions made “minor technical amendments” to the Public Service Pensions Directions 2022.

The updated directions came into force on 30 April 2025, and extended to England and Wales, Scotland and Northern Ireland.

The amendments focus specifically on ‘Part 2: Chapter 1 schemes’ - schemes other than judicial schemes and local government schemes.

The announcement followed an exchange between HM Treasury and the government’s actuary department, in which HM Treasury public spending group director, Nick Donlevy, queried the impact of the proposed changes on interest rates.

In response, government actuary, Fiona Dunsire, concluded that the revised directions should deliver the underlying policy intention and that making the proposed amendments would not affect the overall approach to choosing interest rates.

“The only change which is not an amendment to better meet the underlying policy intent is the one to allow schemes to aggregate payments across tax years rather than scheme years when calculating some interest payments,” she added.

Consequently, the government published the updated directions today.

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