UK pension funds to unlock up to £50bn of investment

The bosses of 17 of the UK's biggest pension funds have struck a deal with the government that it is claimed will release up to £50bn worth of investments, with at least half earmarked for British assets including clean energy projects and homegrown startups.

- Kalyeena Makortoff

Fund managers including Aviva, Legal & General, M&G, Phoenix and the Universities Superannuation Scheme have agreed to sign a new "Mansion House accord" that will lead to at least 10% of their workplace pension schemes being invested in private market assets by 2030.

Half of that money (5%) will be earmarked for UK investments, including stakes in private British businesses, property and major infrastructure projects, all areas of focus as the government tries to kickstart the economy.

The new accord doubles the size of commitments made under a deal arranged by the Conservative government in 2023, known as the Mansion House compact. Led by the then-chancellor, Jeremy Hunt, signatories agreed to allocate 5% of funds to private assets, with no stipulation about keeping any of that money in the UK.