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Pension Investment in UK Equities
25 November 2025
Lead MP
John Glen
Salisbury
Con
Responding Minister
Torsten Bell
Tags
EconomyTaxation
Word Count: 9354
Other Contributors: 9
At a Glance
John Glen raised concerns about pension investment in uk equities in Westminster Hall. A government minister responded.
Key Requests to Government:
The lead MP asks for robust accountability on delivering changes and seeks assurance that legislation will ensure equality for constituents across regions like Northern Ireland.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
UK pension funds are hugely important for millions of future pensioners and scale-up businesses seeking additional investment. However, only 4% of the second largest pool of pension capital in the world is allocated to UK assets, leading to under-investment in the UK economy compared to G7 peers by around £100 billion.
Bobby Dean
LD
Carshalton and Wallington
Highlights the issue of UK pensions allocating too much into low-performing bonds and global passive indices rather than domestic assets. Discusses concerns about artificial intelligence-driven financial algorithms amplifying this trend.
Callum Anderson
Lab
Buckingham and Bletchley
Welcomes the work advanced through the Pension Schemes Bill to create larger pension funds that can invest at scale. Stresses the importance of backing British businesses with British capital for jobs, innovation, and higher household incomes.
Jim Shannon
DUP
Strangford
Emphasised the regional impact on Northern Ireland's workers enrolled in UK-wide pension schemes, asking for assurance that similar provisions will happen in Northern Ireland to ensure equality.
John Glen
LD
Braford and The City of Bradford
The hon. Member for Braford and The City of Bradford thanked the Minister for his response and highlighted the need to continue discussions on empowering pension fundholders to invest in UK equities.
Kit Malthouse
Con
North West Hampshire
Asked about the impact of the change from defined benefit to defined contribution, questioning whether it has led to an unwitting repricing of the return on risk which might have impacted pension fund investment and overall retail investment.
Rebecca Smith
Con
South West Devon
She agrees with the concerns raised about the decline in UK equity investments by pension schemes and supports expanding people's awareness of investment options. She also calls for engagement with the industry to understand barriers before implementing new measures.
Richard Tice
Reform
Boston and Skegness
Congratulates John Glen on securing this debate. Asked about the collapse of listings on the London stock market by around 80% in the last decade, pointing out a decline to a 25-year low for AIM.
Torbay
Concerned about the law of unintended consequences if mandation power is given to future governments, especially considering recent political events in the US. Suggests that risk aversion following the 2008 crash has affected pension fund managers' appetite for investment.
Torsten Bell
Lab
South West Devon
The hon. Member for South West Devon argued that capital gains on shares in equity ISAs receive tax relief, and that better financial advice could encourage more investment.
Government Response
Torsten Bell
The Parliamentary Secretary to the Treasury
Government Response
Welcomed the debate on Budget eve, acknowledged the concerns and agreed that understanding barriers is crucial before considering mandation powers in the Pension Schemes Bill. Emphasised the constructive approach of the right hon. Member for Salisbury. Discussed the Government's Pension Schemes Bill, highlighting measures to increase pension scheme size and sophistication. Emphasised transparency through detailed disclosures in DC funds and voluntary commitments from major funds to invest in private assets. Mentioned broader steps including modernising UK listing rules and establishing PISCES for private companies. Celebrated recent positive momentum on the stock exchange with examples of new listings. The Minister outlined significant reforms being introduced for both capital markets and the pensions industry, emphasizing the importance of actual investment over financial flows. He also addressed concerns about the risk appetite in the market and acknowledged the need to continue conversations on empowering pension fundholders.
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Assessment & feedback
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.