The Pensions Regulator (TPR) has pledged to reduce unnecessary regulatory burdens and improve data sharing, as part of the government's broader plans to cut the administrative cost of regulation on business and drive economic growth.

Chancellor, Rachel Reeves, met with regulatory bosses yesterday (17 March) to reveal the action plan, which outlined proposals for a "radical shake up" designed to save businesses "billions" as more regulators are axed and core legal duties are streamlined.

In particular, TPR pledged to review the amount of capital reserving that master trusts are required to hold, with a view to safely freeing up millions of pounds for schemes by the end of 2025/26.

In addition to this, it confirmed plans to develop an innovation framework and criteria to trial pensions innovation ideas and launch a hub to test a variety of innovation services with the market by the autumn of 2025, as previously announced at the end of last year.

TPR also pledged to reduce unnecessary regulatory burdens and improve data and data-sharing.

As part of this, TPR said it will monitor its engagements with schemes and employers over the course of 2025/26, seeking to reduce unnecessary regulatory burden whilst maintaining current high levels of compliance.

This will include monitoring the quality and value of regulatory interaction and making sure that new interventions are not just clearly linked to delivery of better outcomes for savers but are also efficient and effective in delivery.

In addition to this, the regulator announced plans to conduct a review of its scheme return and supervisory return data collection requirements by the end of March 2026 to identify options to reduce unnecessary burdens on schemes.

Subject to the outcome of the review, the government will consider how and what TPR captures, including amendments to legislation as required.

TPR is also expected to support the government's broader growth agenda as part of the new plans, having pledged to encourage consolidation and consideration of investment in productive assets by using the new Value for Money framework to drive public disclosure of long-term risk adjusted net returns to help drive competition, growth and enhanced member outcomes.

Ahead of this, the regulator said that it will look to drive consolidation in savers’ interests and encourage the voluntary disclosure of asset allocation data to shine a light on the relationship between asset allocation and net performance.

Pensions Management Institute (PMI) chief strategy officer, Helen Forrest Hall, backed the plans, stating: "The PMI supports targeted regulation that fosters high workplace standards through industry qualifications and education, ensuring optimal outcomes for scheme members.

"We are committed to continuous innovation, exemplified by our Lifetime Savings Initiative (LSI) which has driven actionable recommendations to address barriers to financial security and help build a sustainable UK savings model.

“We welcome TPR’s focus on innovation and eagerly anticipate collaborating with the new innovation hub, sharing insights from our growing Global Innovation Centre, including the LSI.”

However, Spence & Partners UK sales lead, Adrian Chapman, said that whilst it is a good thing generally that regulators are looking to lighten the burden, remove duplication and encourage innovation, consumer protections need to remain "robust".

"Vigilance is needed where competing commercial interests exist," he continued. "For example, outside of pensions in the water industry there has clearly been tensions between commitments to shareholders versus investment in consumer water services.

"In the pension industry defined benefit schemes are overseen by trustees whose primary mandate is consumer protection with little or no conflicting commercial interest save for the efficiency (and therefore cost) of how they fulfil this mandate.

"On the face of it this looks like a regime that could benefit from lighter touch regulatory oversight particularly where professional trustees are involved on the trustee board.”

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