Government unveils new auditing rules for LGPS sector

Published: July 15, 2025

Ministers have announced reforms to the way those in the LGPS sector are audited, in a move aimed at tightening oversight of the industry. 

The Devolution and Community Empowerment Bill promises to fix long-standing problems in how Local Government Pension Scheme (LGPS) funds are audited, with ministers pledging stronger oversight and consistent national standards.  

A new Local Audit Office will be created to coordinate audits across England, replacing the fragmented system currently in place. Councils will also be expected to play a more hands-on role in scrutinising how their pension funds are managed. 

The reforms follow repeated warnings about the state of local audits, with nearly half of them missing deadlines in recent years. The government says the changes will make audit processes more transparent, timely and reliable, and has pledged new funding to help councils clear existing backlogs. 

Deputy Prime Minister Angela Rayner described the reforms as “a new dawn of regional power,” saying they would “rebuild trust” in public finances. 

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