Particle.news
Download on the App Store

Over 250 UK Companies Urge Reeves to Set 25% UK Weighting in DC Pension Defaults

A coordinated letter led by the London Stock Exchange Group chief argues the change could unlock tens of billions for UK companies ahead of the Autumn Statement.

Overview

  • The coalition asks the chancellor to require a “UK‑weighted” default so that 25% of defined contribution pension assets are invested in domestic markets.
  • New Financial analysis cited by signatories indicates potential inflows of £50bn to £100bn, with some reporting about £76bn by 2030.
  • Backers warn that shrinking domestic risk capital leaves smaller firms struggling to scale and more vulnerable to overseas ownership, with fewer gains accruing to UK savers.
  • Government data reported in coverage show DC schemes invested about 8% in UK equities in 2024, with a projection of 3.5% by 2030.
  • The letter, driven by LSEG chief David Schwimmer and signed by firms including Schroders, Mulberry, Mitchells & Butlers, Kier and Bakkavor, was expected to be sent to Rachel Reeves this week, with LSEG declining to comment.