Question to the HM Treasury:

To ask His Majesty's Government what plans they have to mandate investment in British assets; the timing of any proposed mandate; and when an impact assessment will be published.

On 13 May 2025, 17 of the UK’s largest pension providers signed the Mansion House Accord.

The Accord is an industry-led voluntary commitment by signatories to invest 10% of their main defined contribution default funds in private markets, half of which will be in the UK, by 2030. This will mean £50bn of investment in private markets from these providers, including over £25bn in the UK.

As announced in the Final Report of the Pensions Investment Review, the Pension Schemes Bill includes powers that will enable the government, in future, to apply binding asset allocation requirements on workplace DC default funds.

The government does not anticipate it will use the reserve powers, which are designed to serve as a backstop for use if the defined contribution pensions industry fails to make sufficient progress following the voluntary commitment.

The legislation contains a range of safeguards, including a requirement that, prior to introducing any requirements, the government publish a report regarding the impact of the proposed measures on savers and economic growth. Additionally, the powers are time-limited and will expire in 2035 if they have not been exercised.