Pensions Investment Review Final Report published with consultation responses

The Pensions Investment Review published its Final Report on 29 May 2025, concluding the review launched by the Chancellor on 20 July 2024¹. The report sets out final policy positions and reforms for the defined contribution (DC) workplace pensions market and the Local Government Pension Scheme in England and Wales (the LGPS), building on positions consulted on in an Interim Report published on 14 November 2024¹.

The review, run by HM Treasury, the Department for Work and Pensions and the Ministry of Housing, Communities and Local Government, focused on tackling fragmentation in the DC workplace pensions market, boosting investment in productive assets and increasing savers' returns, and on tackling fragmentation and inefficiency in the LGPS to unlock its investment potential¹.

The Final Report was published alongside the responses to two consultations: "Unlocking the UK pensions market for growth" and "Local Government Pension Scheme in England and Wales: Fit for the future"¹. The government says the reforms will ensure DC workplace pension schemes and the LGPS take advantage of consolidation and scale, to deliver better returns for UK savers, ensure the sustainability of the LGPS, and boost investment from pension funds in productive assets¹.

Legislation to implement the reforms will form part of the forthcoming Pension Schemes Bill¹. The Final Report itself is dated 30 May 2025 in the collection listing, while the collection page and the two consultation outcomes are dated 29 May 2025¹.

Why it matters for households

The review covers two separate groups of savers. The first is people saving into DC workplace pensions, the arrangement most private sector employees are auto-enrolled into, where the report's focus is on consolidation and scale among schemes¹. The second is members of the Local Government Pension Scheme in England and Wales, a funded scheme for local government employees, where the review looked at fragmentation and inefficiency¹.

The stated aims are better returns for UK savers, the sustainability of the LGPS, and more pension fund investment in productive assets¹. The report does not itself change any saver's entitlements or contributions; the reforms it sets out are to be implemented through the Pension Schemes Bill¹. The Final Report does not set out the detailed figures for individual schemes or members, and no changes to contribution rates, retirement ages or benefit structures are reported in the published material¹.

What happens next

Legislation to implement the reforms will form part of the forthcoming Pension Schemes Bill, which has not been given a date in the published material¹. The Final Report and the two consultation outcome documents were published on 29 May 2025, with the Final Report listed as dated 30 May 2025¹.