Commons Sense

House of Commons · Ministers' Questions

Pension Schemes: Incentivising UK Investment

Tuesday 19 December 2023 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 1 Not answered 0

Key points

  • UK Department announced measures at the autumn statement to improve pension saver returns and increase investment opportunities.
  • Eleven of the UK's largest defined contribution pension schemes committed to allocate at least 5% of their funds to unlisted equities by 2030.
  • Government aims to unlock 50 billion of investment in high-growth UK companies through the industry-led Mansion House compact.

Topics (select to filter)

Questions & Answers

Q1 Flick Drummond Con
Economy Business & Trade Benefits & Welfare
Context

The MP is concerned about pension schemes not adequately investing in technology firms and high-growth companies, especially when compared to other countries.

Question

What steps his Department is taking to incentivise pension schemes to invest in the UK. The UK's pension funds lag behind their counterparts in the USA, Scandinavia and Australia for investing in technology firms. Can my hon. Friend continue his work on reforms and ensure that more pension fund investment stays in the UK, to boost our tech sector?

Answer from Bim Afolami

At the autumn statement, we set out a series of measures to improve pension saver returns, increase opportunities for investment and boost the UK's capital markets and high-growth companies. Under the industry-led Mansion House compact, 11 of the UK's largest defined contribution pension schemes have signed up to the objective of allocating at least 5% of their funds to unlisted equities by 2030. We believe that could unlock £50 billion of investment in high-growth companies and should help increase returns to savers.

Answered
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Q2 Flick Drummond Con
Economy Business & Trade Benefits & Welfare
Context

The MP is concerned about the lag of UK pension funds in investing in technology firms and high-growth companies compared to other countries.

Question

Can my hon. Friend continue his work on reforms and ensure that more pension fund investment stays in the UK, to boost our tech sector?

Answer from Bim Afolami

Under the industry-led Mansion House compact, 11 of the UK's largest defined contribution pension schemes have signed up to the objective of allocating at least 5% of their funds to unlisted equities by 2030. We believe that could unlock £50 billion of investment in high-growth companies and should help increase returns to savers.

Answered
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Q3 Jim Shannon DUP Strangford
Economy Northern Ireland Business & Trade
Context

The MP is concerned about ensuring pension fund investment goes to cutting edge businesses such as Wrightbus and Thales, both important in Northern Ireland and the UK.

Question

What steps can be taken to ensure UK-wide investment by pensions schemes in cutting edge businesses such as Wrightbus and Thales?

Answer from Bim Afolami

We need to ensure that the industry abides by its commitment to the 5% target. Working with the Exchequer Secretary, my hon. Friend the Member for Grantham and Stamford (Gareth Davies), we must present the right investment opportunities so that the capital goes into the UK in the right way.

Partly answered

Not addressed: Specific actions or commitments to invest in Wrightbus and Thales were not provided.

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