PPF increases compensation cap

The Department for Work and Pensions has revealed that it intends to increase the PPF compensation cap for long-serving scheme members.

The cost of this increase to the compensation cap will be met by existing levy payers – estimates suggest that the change will increase levies by around 4% over the period to 2030. The proposal is that the standard cap will increase by 3% for each year of service over 20 years, up to a maximum of twice the standard cap.

People who are already in receipt of capped compensation may receive an increase when the relevant legislation is in place, but the increase will not be backdated.