STATEMENT: Reform UK’s plan to Overhaul the Local Government Pension Scheme

Commenting on Reform UK’s pledge to overhaul the Local Government Pension Scheme (LGPS) and mandate funds to invest in Britain, UKSIF CEO James Alexander said:

“Proposals to force pension schemes to invest in the UK run the risk of distorting markets and creating asset bubbles.

“They could also lead to lower returns for savers, at a time when shortfalls in retirement pots have left a whole generation facing a later-life income crisis. This stands to affect workers across the economy, including those now close to leaving employment.

“If policymakers want to unlock the power of pension capital, their focus should be on building a strong pipeline of investment opportunities that can help fund our high-growth areas, such as the clean energy sector.

“This is the most effective way to ensure private finance delivers both sustainable economic growth and good returns for savers while creating thousands of quality jobs across the country.”