Our commissioned research, produced by Oxford Economics, shows that a suite of six policy changes has the potential to deliver up to £220 billion in additional UK investment over the next decade, permanently adding 0.7% to UK GDP by 2035.
Why it matters
Delivering long-term growth must be at the heart of economic strategy. The UK has deep pools of capital, world-class financial expertise, and institutions that are trusted at home and respected abroad. The challenge is to harness those strengths to build a more productive economy.
Pensions capital is central to that effort. With more than £3 trillion in long-term savings, even a modest shift towards productive assets can finance the homes, infrastructure, and innovation the country needs.
“This research shows what is possible when conditions are aligned. The right policy framework could unlock up to £220 billion of additional investment over the next decade, strengthening public finances and increasing household incomes. The prize is clear if government, investors and industry embrace the challenge: a more resilient, more competitive economy where long-term savings support long-term prosperity.”
Group Chief Executive L&G
Economic contribution
In additional UK investment over 10 years
£220bn
permanent uplift to UK GDP by 2035
0.7%
in extra government revenues by 2035
£8.8bn
increase in annual household disposable income (2024 prices) by 2035
£330
Six policy levers
L&G has commissioned Oxford Economics to assess the economic contribution of six policy reforms that will support the pension and insurance sector, channel capital into the UK, helping the Government deliver on its growth mission.
The Mansion House Accord
Allocating 5% of default DC pension funds to UK private markets by 2030.
Local Government Pension Scheme reforms
Increasing local investment to support regional growth.
Surplus extraction
Unlocking defined benefit scheme surpluses for reinvestment.
Increasing pension contributions
Raising minimum auto-enrolment contributions to 12% and expanding coverage
Building on Solvency UK
Extending reforms to unlock insurance sector investment in productive assets
Next steps
Realising this potential depends on deploying capital into productive assets across the economy. The next phase of A Blueprint for Growth will focus on investment opportunities - examining how long-term capital can be mobilised into sectors such as housing, clean energy, and digital infrastructure. L&G will convene government, business, and investors to identify and remove barriers to deployment.