The Pension Schemes Bill passed by the House of Lords on April 28, 2026, signifies a major change in the UK’s pension investment mandates. The bill aims to enhance outcomes for pension savers and stimulate investment in the UK economy.
Key facts:
- The bill includes hard statutory caps limiting mandation at 10% of a default fund.
- 5% of the mandation may be directed into UK assets.
- The reserve power will not be usable before 2028 and will expire in 2032 if unused.
- The mandation power applies only to the default auto-enrolment fund.
- The House of Lords rejected amendments to further limit the mandation power.
Julian Mund, chief executive of Pensions UK, stated, “The legislation enacts a series of critical reforms that will improve the value savers get from pensions and make the system easier to navigate for employers and savers.” This reflects a growing consensus on the need for reform in pension management.
Helen Whately, shadow work and pensions minister, added, “Trustees should not need state approval to act in the best interests of their members.” This highlights ongoing debates about fiduciary duty within pension schemes.
Louise Davey, head of policy and external affairs at the Independent Governance Group, emphasized that “the core principle of effective trusteeship is the ability to act in the best interests of their members, consistent with their fiduciary duties.” Such statements underline the importance of maintaining member-focused governance as reforms unfold.
Patrick Heath‑Lay, chief executive of People’s Partnership, remarked, “These reforms are only the beginning, and the needs of savers must be kept firmly at the heart of this evolving process to future proof retirement saving.” The expected Royal Assent on April 29, 2026, will mark another step in this ongoing evolution.
