Four in Five UK Businesses with DC Schemes Poised for Major Overhaul of Employee Pension Provisions
A significant shift is on the horizon for defined contribution (DC) pension schemes in the UK, according to new research from LawDeb Pensions.

Four in five (80%) businesses currently offering a DC scheme anticipate changing their provision type in the coming years. This widespread transformation is primarily driven by a pursuit of greater value for money, improved governance, and the evolving regulatory landscape - amongst other factors.
The research - which included businesses with DC schemes (representing 57% of all businesses surveyed) - found a clear trend towards consolidation and specialised management. Nearly two-thirds (63%) of these businesses expect to transition to either a master trust (41%) or an own trust (22%). Only 16% foresee a move to a Group Personal Pension (GPP), and a mere 1% are considering a return to a defined benefit (DB) scheme. Despite the strong impetus for change, one in five (20%) businesses indicate they will maintain their current arrangements.
The drivers of change
The decision to re-evaluate DC provisions is multifaceted, with a number of key factors pushing businesses to change their approach. Value for money stands out as the biggest driver of change, with half (50%) of firms citing securing improved value as their main motivation. This is followed by the need for strong and robust management, evidenced by 41% looking to make changes in order to ensure a higher quality of governance. The ever-evolving regulatory environment is also playing a role in prompting businesses to reassess their schemes, with over a third (37%) of those with DC schemes expecting to make changes as a result.
Other notable factors influencing these decisions include cost (34%), the pursuit of best practice (33%), the range of investment options (28%), and the quality of member communications (28%). Government policy, such as the Mansion House reform, is also impacting 26% of businesses - highlighting the broader economic and political influences on pension planning. Inertia may also be in play for one in five (20%) businesses, who attribute their current provision to being what they’re familiar with.
Elizabeth Hartree, Trustee Director and Head of Defined Contribution at LawDeb Pensions, commented: “Our research highlights the proactive steps many UK businesses are currently taking to enhance their DC offerings and better serve their members' needs.
“On top of this, firms are having to navigate an increasingly complex financial and regulatory landscape. Upcoming changes, such as the Pensions Schemes Bill and measures to introduce Targeted Support, will have a seismic effect on the DC market; and while it could deliver positive, member-focused outcomes, it will require serious consideration from any business with a DC arrangement. It’s clear that businesses are already anticipating widespread changes, but trustees must also ensure that they focus on delivering improved outcomes in the face of a rapidly changing market.”
ENDS
Methodology
The research was conducted by Censuswide on behalf of LawDeb, surveying 150 finance decision makers in the UK who have input on their company’s DB scheme, and who are not sole traders, in December 2024.