Policymakers should “build on the LGPS’ existing strengths”
Author: LAPF Investments | Published: September 1, 2026
Policymakers should be focusing their energy on building on the LGPS’ existing strengths, according to a new report by Pensions UK.
It has also said the sector should be prioritising the effective delivery of changes to pooling, governance and administration – all while enabling the LGPS to continue delivering for members, employers and the wider economy.
It comes as part of a new report published by the trade body on the LGPS, which suggests that the total assets across the sector in England, Wales, Scotland and Northern Ireland – as of 31 March 2025 – stood at £479bn.
Meanwhile, and based on data from 67 pension funds, funds in England and Wales held £68.6bn in UK assets as of March 2025 – including £6.1bn in UK private equity and £11.7bn in UK infrastructure. In total, around 17% of LGPS assets in England and Wales were invested in the UK.
The report goes on to add that, as this figure is based on limited reporting data, it’s likely to understate overall UK investment. This sits alongside the scheme’s broad shift towards private markets, with the average LGPS fund increasing exposure from around 12% in 2014 to 26% in 2023.
Given this level of investment in UK infrastructure, the report says that if policymakers want the LGPS to build further on its strong record of investing in UK growth, the focus should be on creating more investable pipelines, strengthening public-private partnerships, and removing barriers that constrain the flow of long-term pension capital.
It added: “The LGPS is already delivering. The challenge now is not to fundamentally redesign a successful model, but build on its strengths.”
