--- title: "Independent schools: SCAPE discount down, contributions rise" description: The Government has announced changes to the SCAPE discount rate, meaning independent schools' pension contributions will increase significantly image: https://www.puntersouthall.com/hubfs/Highly%20intelligent%20little%20boy%20in%20the%20classroom%20standing%20on%20a%20stepladder%20to%20reach%20a%20complex%20mathematical%20problem%20on%20the%20blackboard%20that%20he%20is%20busy%20solving.jpeg --- - [ Our services ](https://www.puntersouthall.com/our-services) - [ Pensions ](https://www.puntersouthall.com/pensions) - [ Defined benefit ](https://www.puntersouthall.com/defined-benefits) - [ Defined contribution ](https://www.puntersouthall.com/pensions#defined-contribution) - [ SIPP & SSAS ](https://www.puntersouthall.com/pensions#self-invested-pensions) - [ Expert witness ](https://www.puntersouthall.com/expert-witness) - [ Analytics ](https://www.puntersouthall.com/analytics) - [ Numbers for lawyers ](https://www.puntersouthall.com/analytics#numbers-for-lawyers) - [ Data compliance ](https://www.puntersouthall.com/analytics#data-compliance-for-data-confidence) - [ Legal ](https://puntersouthall.law/) - [ Employee benefits ](https://www.puntersouthall.com/service-update-apr-24) - [ Financial planning ](https://www.puntersouthall.com/service-update-apr-24) - [ Insights ](https://www.puntersouthall.com/insights) - [ Blogs ](https://www.puntersouthall.com/insights) - [ Our story ](https://www.puntersouthall.com/our-story) - [ People & culture ](https://www.puntersouthall.com/people-culture) - [ Our people ](https://www.puntersouthall.com/staff-directory) - [ Awards ](https://www.puntersouthall.com/awards) - [ Careers ](https://www.puntersouthall.com/careers) - [ Contact us ](https://www.puntersouthall.com/contact) [![Punter Southall - Animated icon](https://www.puntersouthall.com/hubfs/raw_assets/public/punter-southall-hc/library/images/client/logos/punter_southall_anim_logo.gif) ![Punter Southall - Text logo](https://www.puntersouthall.com/hubfs/raw_assets/public/punter-southall-hc/library/images/client/logos/punter_southall_text_logo.svg) ](https://www.puntersouthall.com/) ** ** ** - [ Our services ** ](https://www.puntersouthall.com/our-services) - [ Pensions ** ](https://www.puntersouthall.com/pensions) - [ Defined benefit ](https://www.puntersouthall.com/defined-benefits) - [ Defined contribution ](https://www.puntersouthall.com/pensions#defined-contribution) - [ SIPP & SSAS ](https://www.puntersouthall.com/pensions#self-invested-pensions) - [ Expert witness ](https://www.puntersouthall.com/expert-witness) - [ Analytics ** ](https://www.puntersouthall.com/analytics) - [ Numbers for lawyers ](https://www.puntersouthall.com/analytics#numbers-for-lawyers) - [ Data compliance ](https://www.puntersouthall.com/analytics#data-compliance-for-data-confidence) - [ Legal ** ](https://puntersouthall.law/) - [ Employee benefits ** ](https://www.puntersouthall.com/service-update-apr-24) - [ Financial planning ](https://www.puntersouthall.com/service-update-apr-24) - [ Insights ** ](https://www.puntersouthall.com/insights) - [ Blogs ** ](https://www.puntersouthall.com/insights) - [ Our story ](https://www.puntersouthall.com/our-story) - [ People & culture ** ](https://www.puntersouthall.com/people-culture) - [ Our people ** ](https://www.puntersouthall.com/staff-directory) - [ Awards ** ](https://www.puntersouthall.com/awards) - [ Careers ** ](https://www.puntersouthall.com/careers) - [ Contact us ](https://www.puntersouthall.com/contact) - ** ** Pension consulting 3 April 2023 [** Back ](https://www.puntersouthall.com/insights/) **Author:** Graeme Bell # Independent schools: Government announces change to TPS discount rate TPS contributions are on the rise ## Change to SCAPE discount rate means contribution increases | One of the key drivers behind the actuarial calculation of employer’s contributions into the Teachers’ Pension Schemes is the discount rate for valuing the scheme's liabilities. The lower that rate, the higher the liabilities - and therefore the higher each School’s contribution. Following a Government consultation on the methodology behind the calculation, named [SCAPE](https://www.gov.uk/government/publications/public-service-pension-schemes-scape-discount-rate-methodology-a-gad-technical-bulletin/public-service-pension-schemes-scape-discount-rate-methodology-a-gad-technical-bulletin?utm_campaign=Schools%20Campaign&utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz--3Qn7j9M0Vh37tVXH8JYOybTTKKqa6FREluBIupO7aMr22hRIQIaoOH1oVhocOF703Gfca), it's now been reaffirmed as being based on the Office for Budget Responsibility’s forecast of long-term GDP growth. Accordingly, the new SCAPE discount rate for the 2020 valuation is reducing by 0.7% p.a. from 2.4% to 1.7%. This will have a significant effect on the output of the valuation, and the revised employer contributions applicable from April 2024. At Punter Southall Aspire we'll support our Independent Schools clients on their planning around the changes, to help them react accordingly. | | --- | |   **If you and/or your governing body would like to explore any of the above further, or want to discuss your school’s particular circumstances, [just ](mailto:marketing@puntersouthall.com)[get in touch.](mailto:marketing@puntersouthall.com)** | | --- |   Share [** ](mailto:?subject=Independent%20schools:%20Government%20announces%20change%20to%20TPS%20discount%20rate&body=https://www.puntersouthall.com/insights/change-scape-discount-contribution-rise) [** ](http://twitter.com/intent/tweet?text=Independent%20schools:%20Government%20announces%20change%20to%20TPS%20discount%20rate&url=https://www.puntersouthall.com/insights/change-scape-discount-contribution-rise) [** ](http://www.linkedin.com/shareArticle?mini=true&url=https://www.puntersouthall.com/insights/change-scape-discount-contribution-rise) [** ](https://www.facebook.com/sharer/sharer.php?u=https://www.puntersouthall.com/insights/change-scape-discount-contribution-rise) [** Back ](https://www.puntersouthall.com/insights/) ### Get in touch today At Punter Southall, we have a team of highly skilled risk, compliance and legal experts with deep in-house practical experience. Get in tough if you would like a friendly chat with one of us. Get in touch** - LATEST UPDATES ## You may also be interested in [Pension consulting ](https://www.puntersouthall.com/insights/independent-schools-tps-timescale) - 8 April 2021 [Independent schools have time after delay to proposed TPS increases](https://www.puntersouthall.com/insights/independent-schools-tps-timescale) [Read article](https://www.puntersouthall.com/insights/independent-schools-tps-timescale) [Pension consulting ](https://www.puntersouthall.com/insights/teachers-pension-scheme-can-you-afford-not-to-take-action) - 19 June 2023 [Teachers' Pension Scheme - can you afford not to take action?](https://www.puntersouthall.com/insights/teachers-pension-scheme-can-you-afford-not-to-take-action) [Read article](https://www.puntersouthall.com/insights/teachers-pension-scheme-can-you-afford-not-to-take-action) [Pension consulting ](https://www.puntersouthall.com/insights/tps-contributions-30-in-2023) - 14 September 2020 [Independent schools fear TPS contributions could reach 30% in 2023](https://www.puntersouthall.com/insights/tps-contributions-30-in-2023) [Read article](https://www.puntersouthall.com/insights/tps-contributions-30-in-2023) - ###### INSIGHTS #### Subscribe to updates Where we share what we’re thinking about and what conclusions can be drawn on everything from the work we do to the world around us. We hope you find our posts readable, relevant and thought-provoking. Subscribe ** ##### Subscribe to updates Insights ![Footer graphic](https://www.puntersouthall.com/hubfs/raw_assets/public/punter-southall-hc/library/images/client/shapes/footer-graphic.svg) ###### Let’s work together - [Our services](https://www.puntersouthall.com/our-services) - [Insights](https://www.puntersouthall.com/insights) - [Our story](https://www.puntersouthall.com/our-story) - [People & culture](https://www.puntersouthall.com/people-culture) - [Careers](https://www.puntersouthall.com/careers) [** ](https://twitter.com/PunterSouthall) [** ](https://www.linkedin.com/company/1241357) © Punter Southall 2024 - [Terms of use](https://www.puntersouthall.com/terms) - [Privacy ](https://www.puntersouthall.com/privacy-policy) - [Cookies ](https://www.puntersouthall.com/cookie-policy) - [Acceptable use ](https://www.puntersouthall.com/acceptable-use-policy) - [Modern slavery statement](https://www.puntersouthall.com/modern-slavery) - [Data Complaints](https://www.puntersouthall.com/hubfs/Data%20Complaints.pdf) Website by [Harrison Carloss](https://harrisoncarloss.com/) © 2024 Punter Southall Group This website is maintained for general circulation and is intended to provide information only. It is not intended to be construed as a solicitation for the sale of any particular investment or as investment advice and does not have regard to the specific investment objectives, financial situation and particular needs of any person by whom it is read. Tax treatment will depend upon individual circumstances and may be subject to change in the future. Please also note that the value of investments, and /or the income from them, can fall as well as rise so you may get back less than you invested. The past performance of an investment should not be relied upon as a guide to its future performance. Comment and opinion on this website is based on tax year figures in the year written and there is no updating to the current tax year. Punter Southall Group is a trading name of Punter Southall Group Limited. Registered office: 11 Strand, London WC2N 5HR. Registered in England and Wales No. 4096788. This website contains information provided by or about Punter Southall Group and its group companies. Details of such group companies are provided at http://www.puntersouthall.com/our-businesses-legal-information. Punter Southall SIPP Limited (FRN: 189480) and Punter Southall Defined Contribution Consulting Limited (FRN: 121328) are authorised and regulated by the Financial Conduct Authority. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Graeme Bell", "url" : "https://www.puntersouthall.com/insights/author/graeme-bell" }, "dateModified" : "2023-05-09T15:43:36.628Z", "datePublished" : "2023-04-03T15:42:00.000Z", "headline" : "Independent schools: SCAPE discount down, contributions rise", "image" : [ "https://www.puntersouthall.com/hubfs/Highly%20intelligent%20little%20boy%20in%20the%20classroom%20standing%20on%20a%20stepladder%20to%20reach%20a%20complex%20mathematical%20problem%20on%20the%20blackboard%20that%20he%20is%20busy%20solving.jpeg" ], "mainEntityOfPage" : { "@id" : "https://www.puntersouthall.com/insights/change-scape-discount-contribution-rise", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.puntersouthall.com/hubfs/Logos/punter-southall-horizontal-RGB.svg" }, "name" : "Punter Southall" } } ```