IPE UK Briefing: government and regulator publish roadmaps; NEST builds VC footprint

Before Parliament’s summer recess, the UK government published a series of key policy documents setting out the next phase of pensions reform, including a roadmap covering defined contribution (DC), value for money (VfM) assessments, scale reforms and defined benefit (DB) changes.

The roadmap confirmed that larger DC pension schemes, including master trusts, will begin completing and publishing VfM assessments from 2028, with the requirements extending to all workplace pension schemes from 2029.

It also confirmed that minimum scale requirements for DC default arrangements will be introduced from April 2030. Applications to demonstrate compliance with the £25bn assets-under-management threshold, or to enter a transition pathway where schemes cannot meet the requirement, will open in 2029.

The government plans to consult on the regulations in the second half of 2027, followed by consultations from The Pensions Regulator (TPR) on its code of practice and the Financial Conduct Authority (FCA) on related guidance during 2028.

For DB schemes, the roadmap confirmed the legislation enabling surplus extraction will come into force on 6 April, with current consultation closing on 2 September. A consultation on the superfund framework is meanwhile expected in early 2027 ahead of implementation later in 2028.

TPR has also published its regulatory roadmap, setting out how it intends to support the pensions system through the reforms over the next five years.

The regulator said its new corporate strategy is centred on delivering sustainable retirement incomes through a pensions system that provides both security and value. To achieve this, TPR will focus on raising standards of governance and administration through a new common supervisory framework and risk assessment model, while also improving the value for money members receive throughout their pensions journey. To achieve this vision, TPR said it will focus on delivering impact for members across three areas. This includes raising the quality of scheme governance and administration across schemes, including through the implementation of a new ‘common supervisory framework’ and risk assessment model to inform how TPR directs its regulatory efforts for impact and efficiency.

Collective defined contribution

Regulation enabling unconnected multi-employer collective defined contributions (CDC) schemes came into force this month.

While the move has been welcomed by the industry, experts have cautioned that success of multi-employer CDC will depend less on legislation and more on scheme design and execution.

So far only TPT and Church of England have expressed interest in launching such schemes. With TPR’s authorisation process expected to take around six months, the first unconnected multi-employer CDC scheme could launch next year.

The government is also expected to publish draft regulations for retirement CDC later this year, ahead of legislation coming into force in 2027.

Venture Capital

Earlier this month, NEST committed £200m to high-growth companies through the creation of a dedicated venture capital (VC) sleeve with Schroders Capital.

The move builds on the £68bn master trust’s existing private markets strategy, formalising and expanding its investment in high-growth business.

NEST will initially allocate £200m on behalf of its 14m members, combining existing venture investments and providing fresh capital for new late-stage VC opportunities.

The allocation is expected to grow to £1bn by 2030, with a particular focus on UK-based unlisted companies, subject to the availability of suitable investment opportunities.

NEST is also working with Railpen, Border to Coast and the British Business Bank to establish a UK Scale-Up Fund worth more than £1bn, investing in high-growth UK science and technology businesses. The initiative aims to increase the supply of UK growth capital while giving pension savers greater access to returns generated by successful UK companies.

The partners said bringing together major pension investors would help connect institutional capital with the companies, founders and venture managers driving the next wave of UK innovation.

The initiative builds on the British Growth Partnership, which the government tasked the British Business Bank with establishing in 2024 to attract UK pension fund and other institutional investment into venture capital and innovative businesses, supported by cornerstone government funding.

Separately, the British Business Bank invested $25m in industrial AI company PhysicsX as part of its Series C financing. The investment represents the fourth made by British Growth Partnership Fund I since its £200m first close, whose cornerstone investors include Aegon, NatWest Cushon and M&G.

Items to note:

• The IPE Conference & Awards 2026 is taking place on 2 December at the Royal College of Physicians & Natural History Museum in London.

Pamela Kokoszka

UK Correspondent