Pensions Minister ‘pointing at risk that creating mandation power is lighting a long fuse’

The Pensions Minister Torsten Bell today delivered his keynote speech to the Pensions UK investment conference 2026.

In a wide-ranging talk, covering energy and fiscal policy, as well as pensions, we noted two key comments.

“The reserve [mandation] power is only there to backstop the [Mansion House] accord. We will ensure that is put beyond doubt as the legislation enters its final phase of scrutiny in the Lords.”

“UK pension schemes invest less than 0.001% in Venture Capital. In terms of returns, top quartile of VC funds outperform top quartile of any other asset class”.

Steve Hodder, LCP Partner, commented:

“It’s interesting the Minister chose to focus on top quartile returns of a very volatile asset such as Venture Capital. If pension funds are to follow this lead, focus will be on the returns of 3 out of 4 schemes that won’t be fortunate enough to pick a top quartile fund.”

“The Minister was strong in reassuring the room that there is no intention to mandate schemes on how to invest. However, he also referred to the power potentially outlasting the current government, pointing at the risk that creating this power is perhaps lighting a long fuse.”