LGPS expenditure records 11.7% jump in 2024/25
Published: October 23, 2025
Total LGPS expenditure jumped by £2bn, or 11.7%, in 2024/25 to £19.1bn, according to the latest figures from the Ministry of Housing, Communities & Local Government.
This was primarily driven by an increase in expenditure on pensions and annuities.
It comes as part of wider figures published by the department looking at the financial health of the sector. Among its other findings was the news that, at the end of March 2025, the market value of LGPS funds rose to £402.3bn—an increase of £10.7bn, or 2.7%, when compared to the end of March 2024.
Total income, meanwhile, jumped by 5.2%, or £1.1bn, to £21.7bn—mainly as a result of increased investment income.
Interestingly, employers’ contributions fell by 3.9% to £10.1bn. This, the report goes on to say, is “to be expected” after the first year of a triennial review period, where some employers make early payments in the first year.
As for employee contributions, these rose by 5.8% to £3.2bn.
Given the overall value of funds in the sector, it can come as little surprise that by far the largest increase in income came from investments, which rose by 18% to £7bn.
There was also a marginal increase in total membership of the LGPS in England and Wales, rising from 6,740 in 2023/24 to 6,856 in 2024/25.
