Spring Budget 2021: Government revisits DC investments and charge cap barriers

DC pensions

James Phillips
clock • 1 min read

The government will press ahead with plans to use the “largely untapped pool of capital” in defined contribution (DC) schemes to invest in venture capital and growth equity assets.

As part of its Budget and Plan for Growth, both published today (3 March), the Treasury said it wanted to encourage schemes to invest in "high-growth companies" and would seek to make it easier to do so under the auto-enrolment (AE) charge cap of 0.75%. In its Plan for Growth, the government said it wanted to remove disincentives for institutional investors, particularly DC schemes, to investing in a broader range of assets. It said it wanted to "ensure DC pension schemes are not discouraged from such investments and are able to offer the highest possible return for savers." A furt...

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James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

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