£25 billion powered Wales Pension Partnership pool to deliver growth and jobs for Wales
Source: gov.uk (2025-05-09)

People from Cardiff to Carmarthen will see a boost to their local communities and job opportunities, thanks to the Wales Pension Partnership (WPP) launching a new investment company that pools £25 billion of assets.

- Biggest ever Welsh pension fund to be established with £25 billion pooled into a new investment company that can deliver growth as part of our Plan for Change
- The Wales Pension Partnership is being transformed – by pooling the pension funds of 22 Local Authorities it will unleash the full potential of the Local Government Pension Scheme to act as an engine for growth in Wales
- Success of the Partnership is reflected in schemes like Uskmouth Power Station in Newport – supporting 300 jobs with benefits to the local community and economy
The WPP is being transformed so that the Local Government Pension Scheme (LGPS) pool, which will consolidate the assets of 22 Local Authorities’ schemes representing 412,000 members, will be the biggest pension fund in Welsh history, capable of delivering huge investments felt first-hand by businesses and communities in Wales.

By setting up this investment company in Wales, the investment decisions the fund makes can reflect the unique cultural and economic climate of Wales, collaborating with local businesses to invest in communities and delivering growth – making sure the LGPS is delivering for those whose hard-earned money it guards, and their communities.

To see an example of this, Minister for Pensions Torsten Bell today visited Uskmouth Power Station which has benefited from £6.5 million of investment from the WPP for its redevelopment from a coal fired power station into a sustainable energy site –supporting 300 new full-time jobs during construction driving economic growth and prosperity for the community.

UK Minister for Pensions Torsten Bell MP said:

Pensions are a massive part of the economy – and we’re seeing this brought to life here in Wales, where a successful Local Government Pension Scheme is investing in the right places to drive opportunity and growth for the local community.

I’m delighted to visit Uskmouth Power Station in Newport, which has had a £6 million boost from the Wales Pension Partnership, creating 300 jobs which mean opportunity and prosperity at a local level.

Making sure everyone can benefit from the potential of larger pension pools ties into the ambitions of our Plan for Change to boost investment in communities across the country, bringing long-term economic benefits.

The Wales Pension Partnership said:

The Wales Pension Partnership investment in Uskmouth Battery Energy Storage Systems demonstrates our ambitions to attract investment into crucial Welsh infrastructure and secure national energy supplies.

This investment shows our commitment to working with Quinbrook and our strategic partner GCM Grosvenor to: deliver strong investment returns for our pensioners, ensure long-term energy security, reduce carbon emissions, provide jobs and regeneration opportunities across Wales. This is one of many projects that we have in our investment pipeline and will be unveiling over the next 12 months.

Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans MS said:

We have long recognised the benefits of a strong single Welsh Local Government Pension Scheme pool. We want to see the Wales Pensions Partnership continue to go from strength to strength delivering returns for members and able to invest in economic growth for Wales and the UK.

UK Minister of State for Local Government and English Devolution, Jim McMahon OBE MP said:

We are determined to get the best value out of taxpayers’ money, which is why we are reforming the Local Government Pensions Scheme pools in Wales and England to be more efficient, fit-for-purpose and deliver for public servants and their communities.

The scheme plays a vital role in boosting investment and growth across Wales and ultimately putting more money in working people’s pockets as part of our Plan for Change.

The site, once a coal fired power station, is being repurposed to provide up to 460 megawatt hours of electricity storage capacity for the National Grid and bring a retired rail line back into service to deliver materials, saving nearly 8,400 heavy good vehicles from the local road network.

The investment embraces the spirit of change the government has asked to see from LGPS pools with the wider pooling process for the UK’s world-class LGPS set to conclude in March 2026. Reforms will see the LGPS punching its weight globally, while bringing benefits to local communities through dedicated investment strategies and improving transparency for its members.

These reforms will ensure the Local Government Pension Scheme is fit for the future, and boost investment to drive the economic growth and prosperity promised by the Plan for Change.

Additional Information
- More information on our plan to reform Local Government Pension Schemes can be found here: Local Government Pension Scheme (England and Wales): Fit for the future - GOV.UK (https://www.gov.uk/government/consultations/local-government-pension-scheme-england-and-wales-fit-for-the-future/local-government-pension-scheme-england-and-wales-fit-for-the-future#about-this-consultation)