UK pension funds pool £1 bn to boost domestic tech startups

Major UK pension schemes have agreed to pool about £1 billion in a new Scale‑Up Fund that will be used to invest in high‑growth British science and technology companies. The plan follows the Mansion House Compact signed in May 2025, in which 17 pension providers pledged to increase allocations to unlisted equities and venture‑capital assets, with the government urging a shift of retirement savings toward domestic firms.

The fund, led by Nest and Railpen with support from the British Business Bank, targets companies that have proven technologies but need substantial growth‑stage capital to commercialise and scale. By directing at least 5% of default pension portfolios to such unlisted assets by 2030, the initiative aims to close the UK scale‑up gap, keep talent and value at home and could eventually unlock up to £50 billion of growth capital for the British economy.