Pension Fund Reliefs

Baroness Altmann Excerpts

Tuesday 4th February 2025 Lords Chamber

Asked by

[Baroness Altmann]

To ask His Majesty’s Government what plans they have to ensure the taxpayer spending on pension fund reliefs has a beneficial long-term impact on the United Kingdom’s economy and financial markets.

[The Financial Secretary to the Treasury (Lord Livermore) (Lab)]

My Lords, the Government published the interim report of the pensions investment review on 14 November. This report put forward a series of ambitious proposals to reform the UK pensions system. Together, these proposals could unlock around £80 billion of productive investment in infrastructure and fast-growing companies. The full report will be published in the spring ahead of legislation being introduced in the pension schemes Bill.

[Baroness Altmann (Non-Afl)]

I thank the noble Lord for his Answer. Can I press him a little on the £70 billion of taxpayers’ money that is going into people’s pensions every year, with absolutely no requirement for any of it to be placed into the UK or to revive the UK economy? We have a growth agenda, and a desperate need for long-term investment in assets that are very suitable for UK pension funds. Will the noble Lord agree to meet me to discuss ways in which we can encourage or incentivise more pension assets, and more of the taxpayer contribution, to boost our economy rather than all the others? All other major countries’ pension schemes have significant overweighting in their domestic markets, whereas ours have maybe 3% in UK equities.