Impact assessment

Pensions Programme – McCloud compensation

Published 26 September 2024

Project objectives

In 2015 the government made changes to pensions for public service workers. These reforms saw most public service workers moved into new pension schemes. As part of these changes, dependent on their age, some members who were within 10 years of retirement age did not move into the new scheme.

Impacted members, those who were moved to new scheme, challenged the government’s approach through the courts on the basis that it was discriminatory. In 2018, The Court of Appeal judged that the difference in treatment between those closer to retirement and everyone else, was unlawful age discrimination. This decision is often referred to as the ‘McCloud judgment’.

Individuals who breached pensions tax limits, who wouldn’t have breached had the 2015 changes to Civil Service pension schemes not been implemented, are entitled to compensation where they are unable to claim the tax back from HMRC.

This is an enabler allowing individuals in those circumstances to accurately calculate and claim the compensation to which they may be entitled.

This screening equality impact assessment relates to the delivery of the service.

Customer groups affected

Public Sector workers who breached pensions tax limits, who wouldn’t have breached had the 2015 changes to Public Service pension schemes not been implemented.

What customers needed to do

Any individuals affected do not need to do anything until they are contacted by their pension scheme provider. The scheme manager has the responsibility to communicate with their members how the change impacts them. Affected members will be sign posted to making a claim for compensation.

How customers will access this service

Calculate your Public Service Pension Adjustment (CPSPA) is an HMRC calculator and claim submission service which can be found on GOV.UK.

When customers need to do this

The service is available for members to make claims to compensation. Affected members will be contacted by their scheme administrator and provided with the relevant tax information to enable them to claim compensation relating to tax losses.

Assessing the impact

Before the scheme started, we assessed the equality impacts on all the protected characteristic groups in line with the Equality Act and Public Sector Equality Duty and section 75 of the Northern Ireland Act:

• racial groups
• sex
• gender reassignment
• sexual orientation
• pregnancy and maternity
• marriage and civil partnership
• people with dependents and those without
• political opinion (for Northern Ireland only)

There is no evidence to suggest any specific impacts on those customers within any of the protected characteristic groups (listed above).

The following equality impacts were identified:

Disabled

Impact on customers

Consideration should be given to those customers who use screen readers to access digital content.

Proposed mitigation

The services must be in line with HMRC, Home Office and Government Digital Service (GDS) usability and accessibility guidelines:

• HMRC provides additional assistance for customers who are deaf or hearing impaired, blind, or partially sighted
• all GOV.UK web content adheres to national and international standards such as W3C
• HMRC offers Extra Support Team services which can be accessed by those customers who cannot, for whatever reason, interact with HMRC digitally or who need additional support and reassurance
• clear guidance to help people via GOV.UK is provided and regularly updated; access to call centres, webchats, minicom, translation to provide direct support

Age

Impact on customers

There is no evidence to suggest any specific impacts on those customers within this protected characteristic group; although consideration has been given regarding impact on older generation customers, who may be more hesitant to engage digitally (although it is recognised this may not be the case for all those in the older generation population).

Proposed mitigation

HMRC offers Extra Support Team services which can be accessed by those customers who cannot, for whatever reason, interact with HMRC digitally or who need additional support and reassurance.

Religion or belief

Impact on customers

Some religious groups, follow rules related to computer use that may affect access to digital services.

Proposed mitigation

HMRC offers Extra Support Team services which can be accessed by those customers who cannot, for whatever reason, interact with HMRC digitally or who need additional support and reassurance.

People who use different languages (Including Welsh Language and British Sign Language)

Impact on customers

Impacted members consist of diverse people whose first language may not be English, including Welsh speaking customers.

Proposed mitigation

The CPSPA will be translated into Welsh by the end of February 2025.

For any customers whose first language is not English, alternative arrangements can be made for friends and family to interpret or speak on a customer’s behalf.

Opportunities to promote equalities

We have considered opportunities to promote equalities and good relations between people in each of the protected characteristic groups and those outside of that group.

None have been identified.

A full equality impact assessment is not recommended.