The Employers’ Liability Tracing Office (ELTO) has announced important updates to its member levy arrangements, alongside a funding update for its major technology transformation programme, ELD NextGen. Following the revision of ELTO’s Articles of Association (AoA), a new approach has been introduced to ensure a fairer, more transparent funding framework that supports the long-term sustainability of the Employers’ Liability Database (ELD).

A Modernised Approach to the Member Levy

As part of its ongoing governance and financial framework review, ELTO has updated its AoA to modernise the way member levies are calculated. Under the revised framework, levy contributions are now calculated based on Members’ Gross Written Premium (GWP), and the previous de minimis threshold has been removed.

This change reflects the evolving composition of ELTO’s membership and how the ELD is used across the insurance industry. By aligning contributions more closely with GWP, ELTO aims to ensure that costs are shared more proportionately across its membership.

Introduction of a Fixed (Flat) Levy

To support the fixed operating costs of maintaining and developing the ELD, ELTO has introduced a fixed (flat) levy. For 2026, this has been set at £1,000.

The fixed levy applies to:

• Members with low or no GWP, including those in run-off
• Members whose calculated variable levy (based on GWP) would otherwise fall below the fixed levy amount

This ensures that all Members make at least a minimum contribution towards the infrastructure that underpins policy tracing, data maintenance, regulatory support, and the long-term resilience of the ELD platform.

ELTO recognises that this represents a new cost for some Members and a change for others. The Board emphasises that these decisions were made carefully, with a focus on fairness, transparency, and long-term sustainability, while remaining mindful of the financial pressures facing the industry.


Funding the ELD NextGen Technology Transformation Programme

ELTO has also confirmed the next phase of its ELD NextGen programme, a multi-million-pound investment to deliver a modern, resilient, and future-proof ELD platform for the industry.

Following detailed planning and procurement, the ELTO Board has approved further delivery of the programme. As previously communicated, this transformation cannot be funded solely from existing reserves or the current industry levy. As a result, all levy-paying Members will contribute to a one-off ELD NextGen programme levy in 2026.

The Board has sought to balance the scale of this investment by leveraging existing efficiencies and reserves, alongside this one-off member contribution. The new platform is already in development and is planned to go live later this year, bringing enhanced security, resilience, and adaptability to meet evolving regulatory and industry requirements.

What Happens Next

Members will shortly receive two separate invoices for the first levy call of the year:

1. The annual ELTO Member levy
2. The one-off ELD NextGen programme levy

Key points on payment terms:

• Annual Member levy:
• Reflects the usual annual inflationary increase
• Standard payment terms of 30 days from invoice date
• Collected on a bi-annual basis
• ELD NextGen levy:
• Extended payment terms, with payment due by 31 May 2026
• A one-off levy call for 2026

This approach recognises that Members may need additional time to plan for and manage this additional cost.

Supporting ELTO’s Long-Term Role in the Industry

These updates represent an important step in ensuring ELTO can continue to fulfill its unique role as the UK’s only Regulated Employers’ Liability Tracing Office. By strengthening its funding framework and investing in a next-generation technology platform, ELTO is reinforcing its commitment to delivering a robust, dependable service that the insurance industry and wider stakeholders rely upon.

ELTO will continue to provide updates and maintain clear communication with Members throughout the delivery of the ELD NextGen programme.