Business
Bank Of England Boss Tells Investors Pensions Help Must End
October 12, 2022
January 26, 2025
By Evans Momodu
1-minute read
Chancellor Rachel Reeves is set to unveil plans this week to release billions of pounds from corporate pension surpluses as part of the government’s strategy to stimulate economic growth.
Sources revealed that Reeves will announce the proposal during a key speech on Wednesday, aiming to tap into the surpluses held in defined benefit (DB) pension schemes.
Estimates suggest the initiative could free up between £60 billion and £100 billion for investment in the economy.
The plan, referred to as "surplus release," is expected to feature in a forthcoming pension schemes bill, anticipated in the coming months.
Earlier this month, Treasury officials, members of the Number 10 Policy Unit, and finance chiefs from the FTSE 100, collectively known as the 100 Group, met to discuss the proposal. The meeting, hosted by Sir Keir Starmer's top business adviser Varun Chandra, explored the surplus release strategy in detail.
This move by Reeves is part of a broader effort to accelerate pensions reforms initiated by the previous government, with Labour looking to drive economic growth through innovative measures.
Source: Sky news
