Representatives from across the pensions industry attended a roundtable to inform the forthcoming value for money consultation yesterday (22 July), publicly unveiling the Pound for Pound (£4£) initiative for the first time.

The initiative, which was established in 2024, will explore how the UK pensions market can move beyond cost-based comparisons and instead assess performance through broader value-based metrics, understanding the practicalities of a process that will shift market conversations away from cost towards value.

It is currently being piloted by a group of providers brought together by People’s Pension, which includes Aviva, Smart Pension, TPT Retirement Solutions, L&G and NatWest Cushon, with additional support from Australian firm SuperRatings.

The initiative was publicly revealed at the roundtable, which was intended to inform the impending regulatory consultation on value for money (VFM) metrics, with a focus on how lessons from Australia and insights from providers could inform regulatory thinking and support the development of the Pension Schemes Bill.

Hosted by Pensions Minister, Torsten Bell MP and chaired by People's Partnership CEO, Patrick Heath-Lay, and Aviva wealth policy director, Emma Douglas, the roundtable included representatives from the Financial Conduct Authority (FCA), the Department for Work and Pensinos (DWP), Pensions UK and a number of the Mansion House Accord signatories, including the £4£ pilot group and SuperRatings CEO, Kirby Rappell.

People's Partnership said that insights from Australia’s superannuation system were central to the session, highlighting how clear benchmarking, transparency and regulatory oversight have transformed member outcomes and understanding of value in Australia.

It also said that the UK’s £4£ pilot is aiming to draw on these lessons, providing anonymised benchmarking reports to UK schemes and assessing how qualitative and quantitative data can be used to meaningfully assess value.

Commenting on the roundtable, Heath-Lay said: “The government’s drive to evolve the pensions market and centre it on value is a significant step change.

"As a pension provider, shining a light on how we ‘measure up’ on value in a transparent and consistent way is a major shift but one that we must all rightly embrace.

"This needs to be introduced in a well-planned and effective manner that aligns to government reforms, enables effective regulatory oversight and most importantly instils greater confidence in the pension system for savers.

"We set up the £4£ initiative to help inform this shift in focus from cost to value, and we are really encouraged by the shared appetite to collaborate and support this fundamental market change.”

Adding to this, Douglas said “Getting the value for money framework right is an essential part of shifting the focus in workplace pensions from cost to value.

"The Pound for Pound initiative gives us the opportunity to test the key metrics in advance and to learn from this, as well as from the Australian experience.”

Pensions UK director of policy and advocacy, Zoe Alexander, also stressed the importance of VFM, suggesting that getting value for money for UK savers is a key driver for the UK pensions industry.

"The Pensions Schemes Bill will introduce new requirements across much of the sector. We know measuring it is complex," she continued.

"We need clarity and evidence to establish the most effective data points for this new framework to ensure savers get the biggest bang for their buck, and to avoid excessive red-tape reporting.

"Though no system is perfect, there's a lot to learn from our colleagues in Australia about their value for money outcomes regime and we look forward to testing this in the UK context.”

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