The chancellor’s 2025 Mansion House speech outlined the UK government’s ambitious plan to reform the financial services landscape.
This programme of reform has the potential to transform how capital flows, how consumers engage with their finances and how the UK positions itself as a global investment hub.
The speech reiterated commitments to pension reform, private market access, regulatory streamlining and investor engagement. However, the industry has heard this vision before.
What matters now is execution – aligning infrastructure, incentives and consumer outcomes to turn ambition into delivery.
In today’s market, this alignment depends on robust data, modern systems and the confidence they bring to decision-making.
A central pillar of the programme is the push to increase defined contribution (DC) pension allocations to private markets.
The Mansion House Accord, announced in May, formalised this goal, with schemes committing to allocate a meaningful portion of default funds to private and UK-based investments.
Moving into private markets is rarely straightforward. Trustees, bound by fiduciary duty, will not simply adhere to government targets
Research by Altus Consulting into how the government’s pension reforms could be managed in practice reveals that moving into private markets is rarely straightforward.
Trustees, bound by fiduciary duty, will not simply adhere to government targets. They need scalable opportunities that deliver strong risk-adjusted returns without excessive cost or operational complexity.
This requires a robust pipeline supported by clean data, transparent reporting and operational processes that can handle less liquid investments with confidence.
Without these foundations, allocations may struggle to align with the Government’s intended policy outcomes and schemes may be slow to deploy capital.
The chancellor’s vision of pension ‘megafunds’ is based on the same logic: larger schemes can achieve better scale, efficiency and investment reach
Building a credible, visible investment pipeline and providing operational clarity to schemes is critical if private market ambitions are to become a positive reality for savers.
The chancellor’s vision of pension “megafunds” is based on the same logic: larger schemes can achieve better scale, efficiency and investment reach. Consolidation is a powerful tool, but only if delivered with care.
Our work on pension reform delivery consistently highlights that member outcomes are vulnerable during poorly managed transitions. Gaps in data or system compatibility create friction, while disengaged employers and misaligned governance erode confidence.
Consolidation driven solely by regulatory pressure risks disruption. However, scheme mergers underpinned by integrated systems, reconciled data and clear visibility of member journeys can deliver lasting efficiency and better outcomes for consumers.
The scale of the programme cannot be delivered in silos. Success will depend on government, regulators, trustees, providers, technology partners and consumer groups working in step.
Without modern platforms and connected data, the government’s reform programme risks remaining a blueprint rather than a building
Our recent Market Pulse research, which explored industry priorities for the next one to three years, shows that firms are focused on technology modernisation, analytics and customer experience.
These are the enablers of reform. Without modern platforms and connected data, the government’s reform programme risks remaining a blueprint rather than a building.
The programme is ultimately about helping people engage more confidently with their finances.
The introduction of targeted support may be the best opportunity yet to build genuine confidence and trust in an auto-enrolment system that has, to date, focused more on accumulating savings than helping people make decisions.
If firms combine clear guidance with timely prompts and reassurance, savers will be better equipped to act.
This month marks the second anniversary of the Consumer Duty, a reminder that strong regulation builds both consumer trust and market confidence. The ability to track and evidence outcomes through joined-up systems and reliable data will be critical to sustaining this confidence as reforms bed in.
The long-term direction of reform is worth celebrating. However, momentum now depends on coherence, coordination and a relentless focus on outcomes for savers.
Delivering growth through financial services will not come from vision statements alone – it will come from disciplined execution, supported by the systems and data that quietly enable the market to deliver on its promises.
Robert Holford is insights director at Altus Consulting, part of Accenture
