The Digester

Lords block Reeves plan to mandate pension investments

Mar 19th 2026

Peers in the House of Lords voted to strip a proposed Treasury power that would have let ministers direct pension scheme investments, forcing the government to reconsider the Pension Schemes Bill.

  • House of Lords voted 217 to 113 to remove the Treasury power to direct where pension schemes invest.
  • The amendment was tabled by Liberal Democrat peer Sharon Bowles, Conservative peers Deborah Stedman-Scott and Thérèse Coffey, and independent peer Ros Altmann.
  • The defeated provision would have allowed ministers to push pension money toward UK and private assets.
  • The change now returns to the House of Commons and ministers must decide whether to seek to reinstate the power.
  • Altmann also won an amendment extending the time before a small pension pot is classed as dormant from 12 months to two years, affecting consolidation of pots under £1,000.

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