On December 14, 2023, the PPF published its final levy rules for 2024/25 following its consultation in September.
In the accompanying Policy Statement, the PPF confirmed a 50 per cent reduction in its target levy collection to £100m next year, down from £200m in 2023/24. In its September consultation, the PPF explained that the current law imposes a limit of 25 per cent year-on-year increases to the levy target. As a result, it was required to set a minimum levy now so that it would be able to charge a material levy in the future (if necessary), without relying on legislative change.
Almost all respondents considered that legislation should be changed as soon as possible to allow the PPF to move to a much lower, or even zero, levy. The PPF has shared these responses with the DWP who will consider the points raised and expects to legislate as soon as parliamentary time allows.
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