LGPS funding levels hit record highs
Published: October 20, 2025
The LGPS funding levels have improved by more than 20 percentage points in the six months to September 2025, going from 126% to 147%.
Based on Isio’s latest Low-Risk Funding Index, it has also reported three firsts. Kicking things off, it found total LGPS assets exceeded £450bn for the first time, resulting in a low-risk surplus of £147bn – the first time this figure has gone above £100bn.
Finally, it’s the first time the index has seen 86 of the 87 funds having funding levels of 100% or higher, with this ranging from 101% to 226% funded.
Isio partner and public services leader Steve Simkins said: “With six months to go until the valuation is finalised, the LGPS finds itself in an even stronger position, delivering another full house of record-high results. Funding levels, assets and surpluses are all higher than they have ever been.
“As LGPS funds review Funding Strategy Statements (FSSs) and share proposed contribution rates with employers, the outlook should be extremely positive and could enable transformational change for employers in the public sector who are under significant financial pressure.
“It is normal practice to take into account post-valuation experience. We would encourage funds to take these improvements into account to support a positive approach to the 31 March 2025 valuation.
“Where decisions have been taken early on in the valuation process, these may need to be reconsidered in light of the 30 September 2025 position.”
