Report

The economic miracle of Great Britain

This report from UK think tank the Social Market Foundation discusses using DB pension surpluses more productively.

In late January, the Chancellor announced changes would be made to existing defined benefit (DB) pension regulations to allow surpluses from these schemes to be released. These assets could then be used for purposes including investment back into employers’ businesses, to provide more money for scheme members, or for investment in the wider UK economy.

This is an urgent question as 88% of schemes expect to decide their endgame strategy within five years. However, key questions remain which will have a major impact on the level of money available, the risk involved, and its effects on the Government’s finances and goals for growth.

This briefing therefore discusses the key information and questions related to the policy and recommends those which will ensure schemes are secure and productive.