The acid test of pension scheme reforms will be if it unlocks infrastructure investment

The Government has announced that it will consolidating the assets of various pension schemes including the Local Government Pension Schemes to free up investment for infrastructure projects.

The idea is to create “megafunds” from the amalgamation of defined contribution schemes and the many local government schemes which will then have more freedom to invest in new businesses and infrastructure, which in turn will attract further private investment.

Sue Ferns, Senior Deputy General Secretary of Prospect, said:

“The acid test of any reforms will be whether they can unlock significant investment in UK infrastructure. There is no bigger priority than our energy infrastructure, in particular making sure Sizewell C nuclear power station urgently gets the go ahead.

“These changes are welcome but look to be incremental. They should be a helpful first step along the path to unlocking much more investment from pension funds.”