Key takeaways

  • The People's Pension is an authorised master trust run by People's Partnership, which has no shareholders, and it has more than £40 billion in assets for about seven million savers.
  • Employers who sign up directly pay a one-off set-up fee of £500 plus VAT, with no monthly or annual employer charge after that.
  • Set-up is free for employers who sign up through an accountant, bookkeeper, payroll provider or financial adviser.
  • Members pay a 0.5% annual management charge plus a flat annual charge, which People's Pension says rose from £4.50 to £6.50 on 1 April 2026.
  • A rebate cuts the 0.5% charge by between 0.1% and 0.3% once a pot passes £3,000, so pots over £50,000 pay an effective 0.2%.
  • The law caps default fund charges at 0.75% a year, and a flat fee can never take a member's pot below £100.
  • Whichever scheme you pick, the minimum auto-enrolment contribution is 8% of qualifying earnings, with at least 3% from the employer.

The People’s Pension is one of the UK’s largest auto-enrolment schemes. For employers it costs a one-off £500 plus VAT to join directly, or nothing if you join through your accountant or payroll provider. Your staff pay a 0.5% annual management charge, a flat annual charge and get a rebate on larger pots. This page sets out those costs as checked on 6 November 2026 and does not rate or rank the scheme.

What is The People’s Pension?

The People’s Pension is a master trust run by People’s Partnership, a business without shareholders that reinvests its profits for customers. It appears on the Pensions Regulator’s list of authorised master trusts, so it has passed the regulator’s authorisation tests.

People’s Partnership said in January 2026 that the scheme held more than £40 billion for about seven million savers. The release describes it as the UK’s largest commercial master trust.

What does it cost employers?

Employers pay only to join, and only if they sign up on their own. There is no monthly or annual employer charge.

RouteEmployer costNotes
Direct sign-up£500 plus VAT, one-offPeople’s Pension’s published fee
Through an adviserFreeAccountant, bookkeeper, payroll provider or financial adviser
FMB member£300 plus VAT, one-offFederation of Master Builders offer

If you already pay an accountant or payroll bureau, ask them to sign you up. That route removes the fee. A fee waiver for all direct sign-ups ended on 31 March 2025, so do not rely on older articles that call the scheme free for everyone.

What does it cost your staff?

Members pay three linked charges. There is a flat annual charge, a 0.5% annual management charge (AMC) on the pot, and a rebate on that AMC for pots over £3,000.

People’s Pension says the flat charge rose from £4.50 to £6.50 on 1 April 2026, and is only taken from pots of £106.50 or more. The rebate works like this.

Pot valueRebateEffective AMC
Up to £3,000None0.5%
£3,000 to £10,0000.1%0.4%
£10,000 to £25,0000.2%0.3%
£25,000 to £50,0000.25%0.25%
Over £50,0000.3%0.2%

The charge is the same whatever fund a member picks and whether or not they are still contributing. Small pots feel the flat fee most: £6.50 on a £1,000 pot adds 0.65 percentage points that year.

The law caps charges on a default fund at 0.75% a year. Regulation 6 of the Occupational Pension Schemes (Charges and Governance) Regulations 2015 allows a flat fee of up to £25 a year combined with a lower percentage charge, and a flat fee can only be taken from pots over £100. People’s Pension uses this combination structure.

To compare schemes fairly, work out the total annual cost on a typical pot for your staff. Include the flat fee, not just the percentage. Our Nest vs The People’s Pension comparison does this side by side, and our workplace pension providers comparison covers other schemes.

What do you still have to pay in?

The scheme’s charges come out of members’ pots, but your contributions are set by law. The minimum total contribution is 8% of qualifying earnings, with at least 3% from you as employer. GOV.UK gives the qualifying earnings band as £6,240 to £50,270 a year.

You must enrol staff aged 22 to State Pension age who earn at least £10,000 a year and work in the UK, according to GOV.UK’s employer guidance. Use our employer cost calculator to see what pension and National Insurance add to a salary.

Which route applies to you?

  • If you use an accountant or payroll bureau, ask them to sign you up through their adviser account. Set-up is free.
  • If you run payroll yourself and have no adviser, expect to pay £500 plus VAT to join directly.
  • If you are an FMB member, ask for the £300 plus VAT rate.
  • If your staff have small pots or move jobs often, compare the flat fee with schemes that charge only a percentage.
  • If you want a scheme with no set-up fee at all, read our Nest pension review.

What to do now

  1. Check your sign-up route. Ask your accountant or payroll provider whether they can register you for free.
  2. Confirm the current charges. Fees changed on 1 April 2026; check the provider’s charges page before you sign.
  3. Check payroll compatibility. The Pensions Regulator advises confirming that a scheme works with your payroll software.
  4. Check the tax relief method. Make sure it suits low earners on your payroll.
  5. Diary your duties. Re-enrolment falls every three years, and you must re-declare compliance each time.

Frequently asked questions

Does The People’s Pension charge employers?

Only a one-off set-up fee of £500 plus VAT if you join directly. Joining through an accountant, bookkeeper, payroll provider or financial adviser is free, and there are no ongoing employer charges.

What is The People’s Pension annual charge in 2026?

People’s Pension says the flat annual charge rose from £4.50 to £6.50 on 1 April 2026. It sits alongside a 0.5% annual management charge, reduced by a rebate on pots over £3,000.

Is The People’s Pension regulated?

Yes. It is an authorised master trust listed by the Pensions Regulator, and its default fund charges must stay within the 0.75% legal cap.

Who runs The People’s Pension?

People’s Partnership runs it. The organisation has no shareholders and reinvests its profits for customers.

Can I switch to The People’s Pension from another provider?

Yes. You can move future contributions to a new qualifying scheme, but you must keep meeting your auto-enrolment duties without a gap. Moving existing pots is a separate decision for each member or the scheme trustees.

Sources

Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.