Found: The UK can learn from this, and the recent Pension Schemes Bill mark steps in the right direction. 4.9

Found: Pension Schemes Bill 22.

Found: Recent action from the Government through the recent Pension Schemes Bill mark steps in the right direction

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to paragraph 3.11 of the Autumn Budget 2024, published on 30 October 2024, what assessment she has made of the potential impact of investments by occupational pension schemes on the (a) place, (b) people and (c) net zero pillars of the growth mission.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

The Government published the Interim Report of the Pensions Investment Review at Mansion House, which sets out proposals to reform the UK Pensions system. These reforms could unlock up to £80 billion in new productive investment including in businesses and infrastructure. Amongst other things this would help improve returns for savers and support the net-zero transition.

The proposed reforms to the defined contribution workplace pension market will accelerate consolidation, creating fewer, larger schemes. This will allow schemes to deliver better value, governance, and investment opportunities, through larger ‘mega-funds’ more able to undertake productive investment.

The Review also proposes reforms to the Local Government Pension Scheme (England and Wales) to tackle fragmentation and inefficiency. The LGPS manages £392 billion worth of assets, and the Interim Report proposes to require all 86 administering authorities to delegate investment management to pools. This will create large pools of professionally managed capital, in line with international best practice, and enhance the capacity and capability of the scheme to continue to drive national, regional and local investment.

The final Pensions Investment Review report, including the final proposals to be legislated for, will be published in the Spring ahead of the introduction of the Pension Schemes Bill.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps she is taking to help ensure that workers contribute sufficiently into their pensions to achieve an adequate standard of living in retirement.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

Ensuring current and future pensioners have an adequate retirement income is a key priority for this Government and a focus of our landmark pensions review.

Automatic enrolment has already succeeded in transforming retirement saving with over 11 million employees having been automatically enrolled into a workplace pension since 2012. Over 22m employees in Great Britain are benefiting from participating in a workplace pension, with over £131bn saved for eligible individuals in 2023.

The first phase of our pensions review – focused on investment and growth – published its interim report in November 2024. Two consultations on unlocking the UK pensions market for growth and reforming the Local Government Pension Scheme closed in January and we expect to provide our response in Spring 2025.

The second phase of our review will follow in due course – focussing on pension outcomes and retirement adequacy.

Alongside this, the Pension Schemes Bill, announced in the King’s Speech includes measures which could boost pension pots by over £11, 000 for average earners saving over their lifetime in a defined contribution scheme.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what plans she has to help raise awareness of the risks of under-saving in pensions for retirement.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

Ensuring current and future pensioners have an adequate retirement income is a key priority for this Government and a focus of our landmark pensions review.

Automatic enrolment has already succeeded in transforming retirement saving with over 11 million employees having been automatically enrolled into a workplace pension since 2012. Over 22m employees in Great Britain are benefiting from participating in a workplace pension, with over £131bn saved for eligible individuals in 2023.

The first phase of our pensions review – focused on investment and growth – published its interim report in November 2024. Two consultations on unlocking the UK pensions market for growth and reforming the Local Government Pension Scheme closed in January and we expect to provide our response in Spring 2025.

The second phase of our review will follow in due course – focussing on pension outcomes and retirement adequacy.

Alongside this, the Pension Schemes Bill, announced in the King’s Speech includes measures which could boost pension pots by over £11, 000 for average earners saving over their lifetime in a defined contribution scheme.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what plans she has to help increase investment in the UK by UK-based pension funds.

Answered by Tulip Siddiq

The Government published the Interim Report of its Pensions Investment Review at the Mansion House event on 14 November. This Report puts forward ambitious proposals to reform the UK pension system which could unlock around £80 billion of productive investment while boosting savers’ pension pots.

The consultations on the proposed measures will close on 16 January. The review will use its next stage to consider whether further interventions may be needed by the government to ensure that these reforms are benefiting UK growth. The final Pensions Investment Review report, including the final proposals to be legislated for, will be published in the Spring ahead of the introduction of the Pension Schemes Bill.

Found: It is to report later this year, ahead of the introduction of the Pension Schemes Bill announced in

Found: Any future pensions policy, including the Review and the Pension Schemes Bill, should put savers first

Found: crucial for seamless communication a mong different systems. 191 DWP (October 2019): “Pension Schemes Bill

Found: We have announced a new Pension Schemes Bill , which will include measures to improve saver outcomes

Found: Two consultations will be published ahead of the Pension Schemes Bill in the Spring to merge defined

Found: The radical reforms, which will be introduced through a new Pension Schemes Bill next year, will create

Found: crucial for seamless communication a mong different systems. 191 DWP (October 2019): “Pension Schemes Bill