Britain’s biggest pension funds back regional growth drive
Billions will be unlocked to build affordable homes, power communities and connect the countryside, as the Chancellor joins forces with pension providers and insurers to drive growth in every region.

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20 of Britain’s largest pension providers and insurers set to launch Sterling 20 group at first-ever Regional Investment Summit on Tuesday.
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Investment drive kicks off with Legal & General (L&G) and Nest committing billions to build more affordable housing, improve broadband connections in rural areas and provide scale-up finance for growing businesses.
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Chancellor set to meet providers and Australia’s biggest fund in Birmingham as government ramps up efforts to drive regional growth and put more money into people’s pockets through the Plan for Change.
The Sterling 20 – a new investor-led partnership between 20 of the UK’s largest pension funds and insurers – will be established at the Regional Investment Summit in Birmingham on Tuesday, working with the government and City of London Corporation to channel the nation’s savings into key infrastructure and fast growing businesses in key modern Industrial Strategy sectors like AI and fintech.
L&G have kicked off this investment drive with a £2 billion commitment by 2030, delivering around 10,000 more affordable homes for hardworking families and supporting the creation of 24,000 jobs nationwide.
Nest, who represent a third of the UK workforce, will also provide Schroders Capital with £500 million - of which £100 million is expected to be channelled into UK investments in the coming years. In addition, Nest will invest £40 million to deliver gigabit-capable fibre broadcast to remote areas in Scotland and Norther England – delivering high-speed reliable broadband to rural homes and businesses in hard-to-reach communities.
Chancellor of the Exchequer Rachel Reeves said:
This is about getting Britain building again – bringing our savings, our investors and our regions together to deliver the homes, infrastructure and industries that will drive growth and create good jobs in every corner of the country.
Our country’s pension funds are some of the biggest in the world. When they invest in Britain, everyone benefits – from the construction worker on site, to the small business on the high street, to the saver seeing their pension grow. Sterling 20 shows what can be achieved when we all pull in the same direction to build a stronger economy that works for, and rewards, working people.
António Simões, Group Chief Executive, Legal & General, said:
As a long-term investor in the UK economy, L&G has a proud history of using pension capital to develop assets that deliver strong financial returns and lasting social impact. Our £2 billion commitment, targeted at housing, infrastructure, and urban regeneration, will help unlock the investment needed in productive assets across the country - creating jobs, strengthening communities, and driving both regional and national growth.
Ian Cornelius, CEO of Nest, said:
Every decision we make puts our members and their long-term outcomes first. We believe private assets can play a key role in delivering strong, consistent returns for them.
That’s why the UK, with its exceptional investment opportunities, is a cornerstone of our strategy. From major infrastructure projects to ambitious small businesses, our investments are helping support economic growth across the country. We have already committed around £4 billion to UK private markets, and by 2030 we expect this to rise to around £12 billion. A strong pipeline of opportunities will be essential to realising this growth for the benefit of our members and the UK economy.
Alastair King, Lord Mayor of London, said:
The Mansion House Accord marked a pivotal step in pension investment reform – building on the foundations of the Mansion House Compact and signalling a clear industry commitment to channel investment directly into UK growth.
This next stage transforms commitment into deployment by uniting the UK’s leading investors around a shared vision and coordinated strategy with government. British enterprise, from AI to renewable energy and infrastructure, is primed for investment. The Mansion House Accord signatories have stated their intent to deliver on the Accord’s promise to give British savers a meaningful stake in Britain’s growth while increasing returns.
The Regional Investment Summit will also see the AustralianSuper, Australia’s largest pension fund and 17th largest in the world, increase its investment into the UK housing market.
The fund will meet with the Chancellor at the Regional Investment Summit, as the Government seeks to reinforce the UK as an attractive investment destination for the billions of pounds it will deploy outside of Australia in the coming years. Ahead of this, AustralianSuper has announced a new UK living investment platform dedicated to investment in rental homes as part of its ambition to invest £8 billion of new capital into the UK over the next five years
Damian Moloney, Deputy Chief Investment Officer at AustralianSuper:
The Superannuation Mission offers a valuable opportunity to share insights, deepen collaboration and build on the strong investment ties that exist between Australia and the UK.
As the launch of our new £500m UK Living Platform demonstrates, AustralianSuper continues to view the UK as a key global investment destination. With the Fund on track to grow its UK assets to £18 billion by 2030, we look forward to further facilitating investment between the two countries for the benefit of members.”
Minister for Pensions Torsten Bell said:
Our pensions system is one of the UK’s great strengths. We’re stepping up the pace of pension reform to support not just British pension savers but the British economy, supporting investment to deliver the growth of communities up and down the country.”
Tom Pearce, Chief Executive Officer, Rothesay said:
The Sterling 20 is a fantastic initiative which will enable the UK’s largest asset owners to deploy capital more effectively into the critical infrastructure and national priorities which are so vital to our economic growth. As the UK’s largest specialist pensions insurer, Rothesay invests at scale across the country and we are committed to working with the government to deliver the innovative solutions which will unlock even greater volumes of domestic investment from our sector.
Andrea Rossi, CEO of M&G Plc, said:
“UK pension providers have a great opportunity to drive economic growth and give savers the returns they need for retirement. The Sterling 20 Group offers a powerful platform for institutional investors to shape the country’s future from long-term investment in housing, infrastructure or strategic national projects. As a UK-listed savings and investment company investing £100 billion domestically, we are proud to be playing our part.
Andy Briggs, CEO, Phoenix Group, said:
Through the Sterling 20 we are helping to unlock billions in long-term investment that will support communities, build critical regional infrastructure, and fuel innovation across the UK. This is about putting our customers’ savings to work in ways that grow their pensions and grow the economy. This landmark initiative brings together the scale and strength of the UK’s pension and insurance sector to invest in Britain’s future.
The formation of the Sterling 20 comes as pension providers ramp up their investment in Britain. It builds on July’s Mansion House Accord, which saw 17 providers representing 90% of active defined contribution scheme savers, commit to invest at least 5% of their main default funds in UK private markets. This commitment will unlock over £25 billion for new UK housing infrastructure and high-growth industries.
All 17 signatories of the Accord, alongside annuity providers Rothesay and PIC, and the Pension Protection Fund have signed up to form the Sterling 20.
Working with the Office for Investment, the Sterling 20 and Australian Superannuation Scheme – who manage a combined £5 trillion in assets - driving growth, creating jobs and putting more money in people’s pockets. Even a small shift towards investing in UK infrastructure would unlock billions.
The Office for Investment’s unique position as a bridge between government, investors and local leaders will allow it to match transformational investment opportunities with capital. It will leverage its visibility across the UK landscape to create a pipeline of opportunities that meet the Sterling 20 and Australian Superannuation Scheme’s investment ambitions and drive growth in every region of the country.
Further information
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The members of the Sterling 20 are: Aegon; Aon; Aviva; L&G; LifeSight by WTW; Mercer; M&G; NatWest Cushon; Nest Corporation; NOW Pensions; People’s Partnership; Phoenix Group; Royal London; Smart Pension; SEI; TPT; USS - Universities Superannuation Scheme; Rothesay; PIC – Pension Insurance Corporation; PPF – Pension Protection Fund.
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The Mansion House Accord is a voluntary pledge by seventeen of the UK’s largest workplace pension providers. Jointly led by the ABI, Pensions UK and the City of London Corporation with the support of the government, signatories agreed to allocate 10% of default defined contribution pension funds into private markets, with 5% committed to the UK.
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The Mansion House Compact is a voluntary pledge by 11 defined contribution pension providers to allocate at least 5% of default funds to unlisted equities by 2030. For providers signed up to the Accord and Compact, progress under the Compact counts towards meeting the Accord’s goals.