Reform UK’s LGPS proposals “lacking in detail”, says Pensions UK
Author: LAPF Investments | Published: February 24, 2026
Reform UK’s proposed plans to merge LGPS funds into one “sovereign wealth fund” is “lacking in detail”, according to Pensions UK.
According to the party’s business spokesperson and deputy leader Richard Tice, the new organisation would co-invest in sectors such as technology, small and medium-sized growth companies, and a “limited amount of strategic national assets.”
Tice also claimed current schemes were “underperforming hugely”, had “no coordination” and were investing in “woke nonsense”.
Additionally, Reform plans to bar any new entrants to current LGPS schemes and enrol new employees into defined contribution schemes; a plan which Pensions UK’s executive director of policy advocacy Zoe Alexander describes as “concerning”.
She said: “We simply do not recognise the picture of the Local Government Pension Scheme that Reform UK has painted.
“The LGPS is one of the largest and most successful pension schemes in the world. It is fully funded and undergoing a major reform programme to consolidate its assets into six large investment pools ranging from £25bn to £100bn, with savings to date estimated at £1 billion, and with further savings to come.
“It is an exemplar of UK investment amongst pension schemes, with an allocation of around 17%. LGPS investment performance for England and Wales has been strong, with the scheme having achieved a return of around seven percent p.a. over the last decade.
“Reform’s proposals are lacking in detail, but its intentions to place all new staff into a defined contribution scheme and to transform the scheme into a sovereign wealth fund are concerning.
“The LGPS exists solely to fund the retirements of close to seven million local government workers, many of whom are low earners. It does not exist to manage a pool of assets to fund government projects.
“With average pension sums received of around £5,000 per year, LGPS members rely on the scheme to invest solely to fund their retirements.
“Any policy proposing changes to the structure or approach of one of the largest pension funds in the world should be supported by evidence, and detailed plans.
“We stand ready to engage with Reform to ensure they have a full picture of the operation and strategic direction of the LGPS.”
Trade union Unison, meanwhile, said the party has shown what it really thinks of working people. Its general secretary Andrea Egan added: “Attacking the pensions of council staff is a disastrous move.
“Employees would be denied a secure retirement income and it would worsen the recruitment crisis in local government.
“Whether it’s targeting low-paid staff or demonising anyone from overseas, Reform has little interest in helping workers or strengthening public services.”
