The government has announced plans to ‘challenge’ Local Government Pension Schemes (LGPS) to move “further and faster” on consolidating assets, announcing plans to consult on requirements for LGPS funds to consider investment opportunities in illiquid assets.

As part of the Spring Budget, the government announced that it will consult on proposed requirements for LGPS funds to transfer all listed assets into their pools by March 2025, and set direction for the future, which it suggested may include moving towards a smaller number of pools in excess of £50bn to optimise benefits of scale.

“While pooling has delivered substantial benefits so far, progress needs to accelerate to deliver and the government stands ready to take further action if needed,” it stated.

“The government will also consult on requiring LGPS funds to consider investment opportunities in illiquid assets such as venture and growth capital, thereby seeking to unlock some of the £364 billion of LGPS assets into long-term productive assets.”

This was alongside plans to for a Long-term Investment for Technology and Science (Lifts) scheme, which will aim to support DC investment into "innovative UK companies", by providing a "key stimulus for industry to create the structures needed to mobilise DC scheme investment".

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