The Mansion House reforms are a package of measures announced in July 2023. They aim to channel more long-term capital into UK-based businesses to support their growth, as well as delivering stronger returns for pension savers.

A central element of the reforms is the Mansion House Compact, a commitment from 11 major defined contribution (DC) pension providers to invest at least 5% of default funds in unlisted equities by 2030. This was followed by the Mansion House Accord, a complementary voluntary expression of intent from 17 workplace pension providers to achieve a minimum 10% allocation to private markets across all main default funds in their DC schemes by 2030, with at least 5% of the total going to UK private markets. The Accord defines private markets as equities, property, infrastructure and debt/credit.

At present, British pension schemes allocate far less to private markets than those in many other nations with comparable landscapes. The first annual progress update in 2024 on the Compact showed that only 0.36% of the total value of signatories’ default funds were invested in eligible assets, increasing to 0.6% in 2025. Expanding this exposure could help support entrepreneurs in Modern Industrial Strategy sectors such as technology, life sciences and clean energy access the growth finance needed to scale globally. It also offers diversification benefits for savers, many of whom are unlikely to be on course to save enough for retirement.

Alongside pension reforms, the Mansion House reforms agenda includes steps to boost Britain’s capital markets and simplify listing rules. Taken together, these measures are designed to make the UK a more attractive place for entrepreneurs to grow, while better connecting innovation with the country’s savings base.

Further reading

This entry was written by Chris Elphick. Chris is the Head of Venture Capital and UK Private Capital.