Workplace Pensions
The question
To ask the Secretary of State for Work and Pensions, what estimate he has made of the proportion of defined contribution pension assets that will be managed by schemes with more than £25 billion in assets by 2030.
Answered by Torsten Bell
As set out in the Department for Work and Pensions’ November 2024 publication “Pension fund investment and the UK economy” the largest 5 and 10 defined contribution funds (either a Master Trust or GPP) in the UK held 55% and 74% of total DC assets respectively. The report can be found here: Pension fund investment and the UK economy.
The Pension Schemes Act scale provisions require defined contribution multi-employer schemes used for automatic enrolment to have scale of at least £25 billion of assets under management in one main scale default arrangement (MSDA) by 2030 or £10bn if approved for transition pathway relief with a credible plan to achieve scale of £25 billion by 2035. As shown in our Impact Assessment it is anticipated there will be approximately 15-20 multi-employer schemes after the scale reforms have taken place. We will continue to monitor the assets that will be managed by schemes as set out in our recently published Evaluation Strategy.
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