What’s the McCloud Remedy and why should you care?
If you or your soon-to-be-ex have a public sector pension - NHS, teachers, civil servants, or local government - there’s a legal change that could make a big difference to your financial outcome. It’s called the McCloud Remedy, and it’s changing how these pensions are valued.
What actually is the McCloud Remedy?
In short: the government changed the way pensions were calculated back in 2015, and that change was later ruled unfair. Now they’re fixing it, but it’s complicated, and it could make your pension worth more than you were first told. It’s vital that you check.
Why This Matters for Your Divorce
Pensions are often the biggest or second-biggest asset in a divorce. So it’s really important they’re valued correctly. But right now, many public sector pensions are still being re-calculated because of McCloud. That means:
Older and newer pension values might be different
Some quotes (called CEVs or CETVs) are still wrong
You could be losing out - or giving away too much - if you don’t check
What Has Changed?
Between 2015 and 2022, many public service workers were moved to a “new” type of pension scheme. The court said this was unfair to younger workers. So now, anyone affected is being put back into their “old” (often more generous) scheme, at least for that 7-year period.
This matters because when you retire, your scheme will work out which version of your pension gives you more and that’s what you’ll get. But in a divorce, decisions are often made before you retire. So how do you know what your pension is really worth now?
So What Should You Do?
Here’s a simple checklist:
✅ Ask the pension scheme if the quote you have includes the McCloud remedy
✅ Look out for the “remedy period” (usually 1 April 2015 to 31 March 2022)
✅ Don’t accept old or unclear pension quotes - they may be wrong
✅ Use a PODE (Pensions on Divorce Expert) to help interpret what the pension is really worth
You don’t have to be a pensions expert - that’s what we’re here for. We will help you (and the court) understand the full picture, in plain English.
Mistakes are happening
Here’s a few common mistakes to watch out for as the scheme administrators work through the complexities of the McCloud Remedy:
⚠️ Using outdated pension values - Some CEVs still don’t include the McCloud remedy, which means they could be incorrect.
📄 Only getting one version of the pension value - You should be given both the old (legacy) and new (reformed) scheme values, with the higher one used.
❌ No mention of the McCloud remedy - If McCloud isn’t mentioned in your pension statement or CETV, it might not have been applied.
📆 Remedy period missing - The time from 1 April 2015 to 31 March 2022 (or from 2014 for LGPS) must be included in the figures. If it’s not, the numbers are wrong.
🔒 Assuming the value is final - Even recent pension quotes can be wrong if McCloud hasn’t been processed yet. Values may change after adjustments.
💬 Pension credits not adjusted - If you’re getting a share of your soon-to-be-ex’s pension, make sure it reflects the right scheme (usually the older one) and the McCloud correction.
🔄 Assuming all schemes work the same - NHS, LGPS, Civil Service and other schemes apply the remedy differently. What’s correct in one may not apply in another.
The Bottom Line
If you or your soon-to-be-ex have a public sector pension, and your divorce involves splitting it, you need to know about McCloud. It’s not just legal jargon - it could make a real difference to your financial future. And if you don’t ask the right questions or get the right help, you could walk away with less than you deserve.