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The press release issued by HM Treasury on 13 May 2025.

Mansion House Accord unlocks up to £50 billion investment for the economy, with first commitments to invest in the UK.

Up to £50 billion of investment for UK businesses and major infrastructure projects is set to be unlocked through a new agreement with Britain’s biggest pension funds, as the Government goes further and faster to drive growth through the Plan for Change.

Seventeen workplace pension providers managing around 90 percent of active savers’ defined contribution pensions will sign the Mansion House Accord at a roundtable with the Chancellor and Minister for Pensions in the City of London today (Tuesday 13 May).

Signatories to the Accord will pledge to invest 10 percent of their workplace portfolios in assets that boost the economy such as infrastructure, property and private equity by 2030. At least 5 percent of these portfolios will be ringfenced for the UK, expected to release £25 billion directly into the UK economy by 2030.

This investment could support clean energy developments across the country, delivering greater energy security and helping to lower household bills, as well as delivering growth finance to Britain’s world-leading science and technology businesses – creating jobs, boosting businesses and putting more money into people’s pockets.

Pension savers will also benefit from the commitment to invest in private markets. Comparable Australian schemes invest significantly more in private markets and domestic companies than UK schemes, and research suggests greater investment in private markets can deliver security through diversified asset holdings and potentially drive higher returns.

The pledge follows hot on the heels of securing trade agreements with India and the US, which will add billions of pounds to the UK economy and protect thousands of steel and car manufacturing jobs, as well as a fourth interest rate cut since last Summer. This demonstrates the UK’s strength in navigating a changing world, going further and faster through our Plan for Change to drive growth and put more money into people’s pockets.

Rachel Reeves, Chancellor of the Exchequer, said:

Through our Plan for Change, we are choosing to back British businesses and British workers. I welcome this bold step by some of our biggest pension funds, which will unlock billions for major infrastructure, clean energy, and exciting startups — delivering growth, boosting pension pots, and giving working people greater security in retirement.

Torsten Bell, Minister for Pensions, said:

Pensions matter hugely, they underpin not just the retirements we all look forward to, but the investment our future prosperity depends on. I hugely welcome the pensions industry decision to invest in more productive assets, from growing companies to infrastructure. This supports better outcomes for savers and faster growth for Britain.

Today’s announcement is more ambitious than the 2023 Mansion House Compact, where eleven funds committed to the aim of investing 5 percent of their workplace defined contribution default funds – the off-the-shelf funds providers offer to the vast majority of savers – in unlisted companies by 2030. The new commitment involves the vast majority of the industry and brings more assets into scope, doubles the target from 5 percent to 10 percent, and includes a specific commitment to investing 5 percent in the UK.

Progress against the commitment will be monitored and the initiative will be reinforced by measures to be announced in the upcoming final report of the Pensions Investment Review. The final report will tackle fragmentation in the UK pension system, creating pension megafunds that take advantage of scale and consolidation like Australian and Canadian funds do, to invest in productive assets like private markets and big infrastructure projects.

Some pension funds have already indicated privately that they will go beyond the targets agreed through the Mansion House Accord, which could lead to even more direct investment in the UK economy – and is particularly welcomed by the government.

Today’s commitment comes alongside progress in the government’s efforts to help pension savers benefit from the opportunities of investing in UK growth. The British Business Bank has now received regulatory approval from the Financial Conduct Authority to deliver the British Growth Partnership – which will provide UK pension funds and other institutional investors with access to the Bank’s extensive pipeline of UK venture capital opportunities.

The government will continue working with the industry to make sure pension schemes deliver the best possible value for savers — while driving the investment needed to deliver growth and put more money into people’s pockets.

Yvonne Braun, Director of Policy, Long-Term Savings, Health and Protection at the ABI, said:

As major investors, the pensions industry already plays a vital role in driving growth in the UK and globally. The Accord formalises the industry’s ambition to invest more in private markets to diversify investments, support innovation and infrastructure, and ensure prosperity.  Investments under the Accord will always be made in savers’ best interests. It is now critical that Government supports the industry’s ambition, by facilitating a pipeline of suitable investment opportunities, tackling barriers to investments, and delivering wider pension reforms effectively.

Alastair King, Lord Mayor of London, said:

The Mansion House Accord builds on the strong foundations of the Compact and signals a step change in ambition: more signatories, deeper allocations to private markets, and a clearer commitment to backing UK assets. That includes a renewed focus on revitalising the Alternative Investment Market (AIM) of the London Stock Exchange as well as the Aquis Exchange, which play a critical role in supporting high-growth companies that drive innovation, jobs and productivity. If we want those firms to scale in the UK, we must ensure they have the capital to do so. This is not just about better pension outcomes, it is about building a more dynamic, competitive investment ecosystem. Delivering long-term, sustainable growth is crucial and the City of London Corporation is delighted to have partnered with industry and Government to bring this ambition to life.

Zoe Alexander, Director of Policy and Advocacy at the PLSA, said:

UK pension schemes already invest billions in UK growth assets. This accord demonstrates the collective ambition of the DC sector to do even more, as well as its confidence that the UK will provide the right opportunities to invest, consistent with schemes’ fiduciary duty to members. The Government, in its turn, has committed to take action to ensure there is a strong pipeline of investable assets for pension schemes. With everyone playing their part, there is great potential to boost returns for savers while providing vital funding to productive growth areas.

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More information

• This is a voluntary expression of intent by seventeen signatories. The Mansion House Accord has been jointly led by the ABI, City of London Corporation and the Pensions and Lifetime Savings Association.
• Signatories to the new commitment include: Aegon, Aon, Aviva, Legal & General, LifeSight, M&G, Mercer, Natwest Cushon, Nest, NOW: Pensions, Phoenix Group, Royal London, Smart Pension, the People’s Pension, SEI, TPT Retirement Solutions and the Universities Superannuation Scheme (USS).
• The signatories to the Accord have stated that £252 billion of assets are subject to the pledge. Based on historical growth rates (which have been halved to reflect a maturing market (17% per annum)) and reflecting further consolidation in the pensions market, this could rise to around £740 billion by 2030.
• The £50 billion and £25 billion cash estimates for investment unlocked are indicative and assume current private market investment levels are at 3.5%, of which 40% is UK-based. These are increased to 10% and 50% respectively by 2030 in line with the Accord.
• Some providers have indicated they may exceed the private markets investment targets in the Accord, which could lead to additional investment.
• Investments will support UK growth sectors, including clean energy infrastructure and innovative small businesses.
• Government Actuary Department Analysis from 2024 found that a portfolio with greater exposure to private markets – including infrastructure and private equity – delivered stronger returns than a baseline portfolio comprised largely of overseas equities.
• The Pensions Investment Review interim report was published at Mansion House 2024, with the final report due Spring 2025.
• Pictures will be published on HMT’s Flickr following the signing event.

Stakeholder commentary:

Andy Briggs, Phoenix Group CEO, said:

This Mansion House Accord will unlock investment in UK private markets while helping deliver better long-term returns and retirements for millions of pension savers. The new commitments have the potential to strengthen the economy by fuelling the growth of British businesses and boosting investment in critical infrastructure.

Phoenix Group has already taken a lead by launching Future Growth Capital — the first private market investment manager formed to deliver the commitments made in the initial Mansion House Compact — committing £2.5bn over three years to the UK’s most exciting, innovative and fastest growing companies. The Accord is the natural next step, and we’re proud to play our part in delivering better outcomes for our customers and for the wider society.

Patrick Heath-Lay, Chief Executive Officer of People’s Partnership, provider of People’s Pension, said:

People’s Pension has a vital role to play in the exciting, shared vision for the future of the pensions’ industry, which will see bigger, stronger, value-driven schemes that will deliver better value to their members. By signing this Accord, we are reaffirming how seriously we take our commitment to delivering better outcomes, as well as helping to drive UK economic growth.

David Lane, Chief Executive of TPT Retirement Solutions, said:

By reaching an agreement with pension providers to invest in UK productive finance in a mutually beneficial way, the Government can achieve its objective and support better outcomes for scheme members. Many pension schemes already invest in productive finance, and most are open to investing more in the UK. Investment in assets such as infrastructure, transportation, housing, venture capital and private markets can play an important role in improving risk-adjusted returns for members while also contributing to economic growth.

Meeting the Government’s objectives while also maintaining fiduciary duty and ensuring strong returns for members are not mutually exclusive ambitions. However, hurdles remain around value for money considerations and the availability of suitable investment opportunities. These should be a focus for Government policy to spur more investment. The most pressing issue to deal with is that provider pricing practices leave very little room in the annual management charge for investment fees. There needs to be a shift to a value for money approach that considers the returns from an investment and not just its fees.

Jelena Croad, Head of LifeSight GB, said:

Signing up to the Mansion House Accord is a significant step for LifeSight. We believe that private market investments can increase overall returns as part of a diversified portfolio and have already begun investing in this way.

Our ability to invest in private markets, without increasing existing fee agreements, showcases our dedication to providing the best possible outcomes for our members. We are excited to be part of this initiative and look forward to contributing to the growth of the economy in which our members live.

We are pleased that the government acknowledges the need to increase the pipeline for UK private market investment opportunities. This recognition aligns with our mission to support the growth of innovative firms and sustainable infrastructure within the UK, ultimately enhancing the retirement incomes of millions of UK pension savers.

For LifeSight members, these investments are being made as part of our main default funds, ensuring that our members benefit from high-quality investment opportunities.

Steve Charlton, a member of SPP’s DC Committee and DC Managing Director at SEI, said:

Due to ongoing collaboration and open dialogue between the industry and the UK government, we have become comfortable with the proposed changes to the Mansion House reforms. This accord demonstrates our collective ambition to have a consolidated workplace pension environment that provides flexibility and choice for pension funds to invest where they see opportunity, whilst balancing their responsibility to members.

We welcome the government’s commitment to ensure a good flow of investable opportunities for pension schemes. This mitigates our previous concerns about the risks of high-priced, poor-quality investments in an environment where the originally proposed investable opportunities are scarce. It enables everyone to play their part in helping to deliver better member outcomes and drive economic growth.

Lorna Blyth, Managing Director – Investment Proposition at Aegon UK, said:

Aegon UK is proud to be a signatory of the Mansion House Accord, which aligns with our aim to deliver better long-term outcomes for our pension scheme members.

We are committed to ensuring our customers can access and share in the potential growth and success of new, innovative companies as part of diversified portfolios. Leveraging our partnership with the British Business Bank, along with our scale and expertise, we are dedicated to developing investment solutions that improve the retirement outcomes of the millions of members of the defined contribution pension schemes we support. We’ve made significant progress in becoming a DC provider fit for the future – but our journey doesn’t end here.

The Accord is a key element of the Government’s growth agenda, alongside other initiatives likely to transform the UK’s DC pensions market. It comes as the conclusions of the Pensions Investment Review are expected imminently and further fundamental changes are expected in the Pension Schemes Bill later this spring. This makes it essential that the Government adopts a pragmatic approach to implementation. Realistic timeframes and a steady supply of high-quality UK investment opportunities across all private asset classes are crucial for ensuring success. This includes collaborating with more organisations such as the British Business Bank to provide access to diverse types of private assets – from private equity to infrastructure, which are all vital for optimising member benefits and developing investment portfolios designed for long term growth.

Amanda Blanc DBE, Aviva Group Chief Executive Officer, said:

This is a major opportunity for the pension and investment industry to support UK growth while delivering improved outcomes for pension savers. As a significant investor in private markets, Aviva has recently launched a number of funds to give over four million workplace pension customers even greater opportunity to invest in UK assets, including innovative, early-stage businesses, and we want to do much more.

Jo Sharples,  CIO, DC Solutions at Aon, said:

We believe that investing in private assets will benefit pension scheme members by delivering better expected returns over the long-term, ultimately resulting in higher retirement outcomes. The new Mansion House Accord is a great step forward in achieving this and is a fantastic example of how the UK pensions industry can work together to break down barriers to enable greater investment in private assets.