Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to help increase the return on investment from pension savings.

The first part of the landmark Pensions Review has concluded with the publication of the Final Report of the Pensions Investment Review on 29 May 2025.

The ambitious reforms outlined in the Final Report will drive scale and consolidation in both the multi-employer defined contribution pensions market and the Local Government Pension Scheme in England and Wales. They will unlock billions of pounds in investment for productive assets, improve efficiency, and deliver better returns for savers. Estimates suggest the measures could increase a Defined Contribution pot at retirement by £5,900 for an average earner who saves over their career.

To deliver these reforms, the Government has introduced the Pension Schemes Bill, providing the necessary legislative framework to implement these reforms, alongside wider pension reforms. The Bill received its first reading on 5 June 2025.

These measures will support the new more ambitious industry-led voluntary Mansion House Accord, announced on 13 May 2025. The Accord is a commitment from 17 of the UK’s largest defined contribution pension schemes to invest 10% of their default funds in private assets, with half of that earmarked for the UK, by 2030. This will unlock more productive investment and help support the diversification of savers’ pensions assets.