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Pension Protection Fund (Pension Compensation Cap) Order 2007

The noble Lord is quite right, I did not deal with that. I will try to do so now. The ceiling is one of the protections that are available to ensure that the PPF can only call upon a certain level of funding. It is the cap on which a levy can be raised. The levy itself will be computed by what is expected to be the need and the call on the protection of the PPF. The ceiling for the current year, ending in April 2007, was £775 million. The estimate of the levy for that period was £575 million. There was a gap; it was within the ceiling. It was recognising part of the two protections that the ceiling could be uprated by an inflationary component and there cannot be an increase year on year on the amount collected by more than 25 per cent, but we are not currently up against that threshold, nor will we be for next year.