VerbatimParliament, as it happens

Public Service Pensions: SCAPE discount rate

Written ministerial statementMade by Torsten BellThe Minister for PensionsTreasuryHCWS37

“SCAPE” (superannuation contributions adjusted for past experience) is the process for setting employer contribution rates at valuations of unfunded public service pension schemes. As part of the SCAPE process, the SCAPE discount rate is used alongside many other factors such as earnings changes, changes to life expectancy and demographic assumptions to determine the appropriate employer contribution rate. Valuations as at 31 March 2024 are currently underway and will result in new employer contribution rates which will be implemented from April 2027.

The current methodology for setting the discount rate, based on the OBR’s forecast of long-term GDP growth, was adopted in 2011, with a commitment to review its methodology every ten years. A review under the previous government from 2021 to 2023 maintained this methodology.

The SCAPE discount rate to be used as part of the ongoing 2024 valuations will therefore be based on the expected long-term GDP growth figures, published by the OBR in July 2025. Based on these figures, the new SCAPE discount rate is CPI+2% p.a.

Open this statement in Verbatim →

Every statement laid before the House

Written statements are how departments announce things without being asked a question. Verbatim carries all of them, searchable alongside the spoken record.

Browse written statements →Read on Verbatim