Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will make an assessment of the potential impact of statement by the Chancellor of the Exchequer on the Growth Plan on 23 September 2022, Official Report, column 933, on the viability of defined (a) benefit and (b) contribution schemes.

The Chancellors statement of 23 September 2022 on the Government’s Growth Plan set out a range of measures to support economic growth and encourage investment. UK pension schemes, including both defined benefit and defined contribution pension schemes, are signficant institutional investors which can contribute to and benefit from a growing economy.

The funding of defined benefit pension schemes has improved significantly in recent years and these schemes are mostly well funded and robust. Increased economic growth will provide investment opportunities with potential to increase their assets and improve funding further. Economic growth will also help defined contribution schemes to increase the value of the pension savings of their members and the proposed reforms of the charge cap announced by the Chancellor will encourage investment in a broader range of assets including less liquid assets like renewable infrastructure projects and UK start-up businesses, for example.

It is important that defined benefit and defined contribution schemes continue to review the resilience and liquidity of their investment strategy, risk management and funding arrangements and the Pensions Regulator has published guidance to support pension scheme trustees to do so.