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United Kingdom

UK pensions 2025: consolidation and Mansion House plans, PRA insurer stress tests, Virgin Media section 9(2B) fallout, declining healthy life expectancy and SPA review, plus Firefighters’ Scheme (England) consultation

Published on: 09 January 2025

Published by a LexisNexis Pensions expert
Legal News
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Article summary

In this issue:

  • Key developments and materials
  • Members and benefits
  • Public sector schemes
  • Daily and weekly news alerts
  • Dates for your diary
  • Trackers

Key developments and materials

Themes and considerations on the pensions radar for 2025

The core storylines for 2025 in pensions are consolidation and a governmental drive to boost investment in the UK economy, though legal and systemic hazards are on the horizon for the sector. The move to build new pension megafunds with the heft to channel a further £80bn into domestic infrastructure and start-ups sits within the Labour government’s Mansion House programme over 2025. In parallel, the Prudential Regulation Authority (PRA)—the watchdog said to oversee the Bank of England—will roll out an ‘enhanced’ life insurance stress test in January 2025, with outcomes anticipated in the third quarter for publication. The PRA’s exercise will gauge the financial robustness of insurers that have vowed to deploy up to £100bn after loosened capital rules were introduced. Moreover, Court of Appeal decisions threaten to raise cost pressures across the pensions arena in the UK.

Pensions consolidation:

This focus on consolidation remains central for schemes. Chancellor Rachel Reeves confirmed indeed in November 2024, during the Mansion House speech, that the government...

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