The Pensions Regulator’s (TPR) comprehensive net expenditure increased from £104.8m to £115.2m in 2025/26, as the regulator oversaw a workplace pensions market covering around 22 million savers and £1.8trn in assets.

TPR’s Annual Report and Accounts 2025/26 revealed that £76m of its net expenditure related to levy-funded activities, while £39.2m was attributable to non-levy activities.

Staff costs increased by £9.6m to £91.6m, which TPR said reflected its revised approach to pay and reward, as well as an increase in average permanent staff numbers from 847 to 895.

The report also showed continued consolidation in the defined contribution (DC) market, with the number of DC schemes falling by 15 per cent year-on-year in 2025, while DC assets increased from £205bn to £249bn.

TPR noted that 71 per cent of workplace pension members are now in master trusts, collective defined contribution schemes and superfunds, while its 2025 DC landscape report showed the number of DC schemes fell to 790.

The regulator also reported that employer compliance with automatic enrolment duties remained high, reaching 97.8 per cent as of 3 March 2026, up from 97.1 per cent in the previous financial year.

In addition, 97.1 per cent of employers were making timely and accurate pension contributions, above TPR’s 94 per cent target.

Meanwhile, the annual report showed that TPR rated six of its eight corporate priority areas as green for 2025/26, with two rated amber.

The amber ratings were given for its priority around fewer schemes delivering good outcomes, reflecting external dependencies linked to the value for money framework, and its enabling priority around becoming a data-led, digital-enabled regulator, reflecting delays in the automatic enrolment re-declaration journey for low-risk employers.

TPR also reported progress on pensions dashboards, with more than 1,300 schemes and providers connected to the central digital architecture, representing over 40 million memberships.

For the year overall, 85 per cent of expected schemes were connected, with scheme connections exceeding targets in the second, third and fourth quarters.

Elsewhere, the report highlighted TPR’s work with trustees and the Fraud Compensation Fund, through which more than 2,000 victims of pension scams received over £81.5m in compensation.

TPR confirmed that more than £1.7bn has been recovered for members since April 2022 through its enforcement work.

On DC consolidation, TPR said it had engaged with 126 schemes on value-for-members assessments during 2025/26, concluding engagements with 70 of these.

Of those, 17 per cent became compliant, 33 per cent had since wound up or consolidated, 3 per cent required enforcement powers, and 47 per cent were out of scope.

On defined benefit (DB) schemes, TPR noted it had implemented the new funding regime, with valuations now being received through its 'Submit a Scheme Valuation' service.

As of 31 March 2026, the regulator had received 468 submissions, compared with around 1,500 submissions in a typical year, and disclosed it was already engaging proactively with the highest-risk schemes.

Commenting on the report, TPR interim chair, Kirstin Baker, said: “We are focused on protecting members, strengthening the pensions system and encouraging innovation where it supports better long-term outcomes.

“Our annual report demonstrates how TPR is adapting to a more complex and fast-moving environment - integrating data-driven approaches into our oversight, deepening our scrutiny of governance and investment decisions, and working with government to drive value.”

TPR CEO, Nausicaa Delfas, added: “Our focus now is on implementation of the reform agenda for pensions, preparing the market for the changes to come whilst delivering for members today.

“We have clear priorities to raise standards of governance, drive better value for money and ensure greater support at retirement.

“And to make this happen, we will continue to evolve our approach, becoming more efficient and effective as a regulator.”

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