Defined benefit (DB) and defined contribution (DC) pensions schemes have been highlighted by the new Minister for Pensions and Growth, Alex Burghart, as "significant institutional investors" that can “contribute to and benefit from” a growing economy.

Responding to a question on the former Chancellor's 23 September growth plan, Burghart stated that the funding of DB pension schemes has “improved significantly” in recent years and that they are “mostly well-funded and robust”.

However, Burghart suggested that they would benefit from increased economic growth, stating that both DB and DC pension schemes are significant institutional investors that can “contribute to and benefit from” a growing economy.

He stated: "Increased economic growth will provide investment opportunities with potential to increase their assets and improve funding further.

"Economic growth will also help defined contribution schemes to increase the value of the pension savings of their members and the proposed reforms of the charge cap announced by the Chancellor will encourage investment in a broader range of assets including less liquid assets like renewable infrastructure projects and UK start-up businesses, for example."

However, Burghart said that it is “important” for DB and DC schemes to continue to review the resilience and liquidity of their investment strategy, risk management and funding arrangements, highlighting recent guidance from The Pensions Regulator to support this work.

In response to a separate question, Burghart also reiterated the government’s commitment to “implementing the triple lock in the usual way for 2023/24” and for the “remainder of the parliament”, after the government previously committed to the triple lock for 2022/23 earlier in the year.

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