The government will make unpaid maternity leave automatically pensionable for Local Government Pension Scheme (LPGS) members from April 2026, affecting nearly seven million workers, of whom around three quarters are women.
The reforms will also introduce statutory gender pension gap reporting and equalise survivor benefits, regardless of relationship type.
The LGPS operates as a defined benefit scheme, providing pension income based on career average earnings and length of service. Periods of unpaid leave that do not count towards pensionable service reduce both the overall service period and the earnings base used to calculate retirement benefits.
The changes address this structural imbalance in pension accrual, including during periods of unpaid additional maternity leave, shared parental leave and adoption leave. Under current rules, scheme members do not accrue pension benefits during these unpaid periods, disproportionately affecting women who take extended leave following childbirth.
The government has also identified discrepancies in survivor pension entitlements, where regulations have resulted in different treatment based on gender in marriages and civil partnerships. The reforms will equalise these payments through backdated adjustments and increased future pension payments.
“It is shocking that this gender imbalance in our pension system has persisted so long, and I am proud that these reforms will help correct this historic inequality,” said Alison McGovern, minister for local government and homelessness.
“These crucial changes will give hard working cleaners, librarians, school cooks and other public servants the security in retirement they deserve.”
Women in the scheme who take maternity leave currently face reduced pension accrual during unpaid periods, which compounds over a career to create significant gaps in retirement income. Following the changes, scheme members will continue to build pension rights during these absences.
Torsten Bell, minister for pensions, said the changes recognise the financial penalty women have faced for taking parental leave:
“These reforms mean that for millions of women working in local government, taking time out to care for a new baby will no longer cost them their pension security.”
The reforms also remove an age cap that previously required LGPS members to have died before the age of 75 for their survivor to receive a lump sum payment. The government says it will enhance data collection on opt-out rates to identify barriers to scheme participation.
Paul Nowak, general secretary of the Trades Union Congress (TUC), said the measures represent progress but called for extension across the public sector:
“These reforms mean that for millions of women working in local government, taking time out to care for a new baby will no longer cost them their pension security.”
