Pension savers could get £6,000 boost under new plans (Image: Getty)
Millions of UK workers could see their retirement savings increase by up to £6,000 under Government plans to overhaul the country’s pension system.
The reforms, set out in the Pension Schemes Bill, aim to double the number of large-scale pension funds by the end of the decade and unlock billions in investment for UK infrastructure and business. The Government plans to consolidate the 86 existing local authority pension schemes, which provide for more than six million people, into just six pooled investment funds by March 2026. The Treasury said that for the first time, local investment targets will also be introduced to ensure money is directed into projects that benefit local communities.
Chancellor Rachel Reeves said the changes would ensure pensions “work for Britain,” (Image: Getty)
Defined contribution (DC) schemes, which rely on investment performance rather than a guaranteed payout, will also be reformed. These schemes, worth a combined £800billion and covering millions of private and public sector workers, will be consolidated to create more large-scale funds.
DC pensions apply to savers who make regular contributions, typically from both the employee and employer. The final amount depends on how the investments perform.
Currently, there are 10 pension “megafunds” managing over £25billion in assets each; the Government wants to more than double that number to over 20 by 2030.
Seventeen of the UK’s largest pension firms have already backed the principles of these reforms through a voluntary agreement earlier this month.
The Treasury estimates the changes could lead to over £50billion being invested in UK infrastructure and business, while also saving £1billion annually through economies of scale and improved investment strategies.
As a result, it said the reforms could deliver better returns for pension savers, with an average worker in a defined contribution scheme seeing their pension pot grow by around £6,000.
Chancellor Rachel Reeves said the changes would ensure pensions “work for Britain,” directing billions into clean energy and high-growth businesses.
Deputy Prime Minister Angela Rayner called the £392billion held in the local government scheme “untapped potential” and said the reforms would drive long-term growth in communities.
Martin Willis, partner at independent consultancy Barnett Waddingham (BW), described the move as “the latest step in a longstanding drive toward consolidation” and eventual investment in private markets.
However, he noted: “While scale can bring benefits like investment access, efficiency, and improved governance, it’s not a silver bullet. Many smaller, well-run own-trust schemes already deliver strong, member-focused outcomes and forcing consolidation risks losing that added value.
“Instead, the Government should focus on removing the real barriers, such as legacy guarantees, while offering practical support, including indemnities for schemes that want to consolidate but face structural and legacy hurdles.”
He added: “Supporting UK growth is a worthwhile goal, but fiduciary duty must remain at the heart of any reform. Bigger isn’t always better – it’s outcomes that matter most.”
M&S explains reason for 10% price increase for everyday staple item
An M&S customer was disappointed to see a price for an everyday item had gone up (Image: Getty)
M&S shoppers will be disappointed to see the price of an everyday shopping staple has jumped up.
A customer contacted the shop chain over social media this morning (May 28) after they were dismayed to find the price of the milk they regularly purchase had gone up from £1.45 to £1.60, an increase of just over 10%.
They didn’t specify which bottle of milk they were referring to. In response, M&S said: “We continually review our food prices and make small changes in line with the market.
“On rare occasions, the prices rise, and while we always try to absorb the costs, in some cases, it just isn’t possible.” M&S has been approached for a comment.
The latest inflation figures show the price of food and non-alcoholic drinks increased 3.4% over the year up to April 2025, although prices for milk, cheese and eggs last month dropped by 0.6% compared to March 2025.
M&S customers wanting to place orders online and in store continue to face frustration as these services are still postponed after a major cyber attack hit the supermarket chain several weeks ago.
One customer contacted the company this morning (May 28) as they couldn’t place an order online, with the group responding: “We are unable to process any online orders at the moment, but stores remain open as usual.”
Asked by another shopper when services would be back up and running, the group also said today: “We can’t confirm that at the moment, but we are working very hard to get operations back online.”
Jonathan Lee, director of Cyber Strategy at cyber security group Trend Micro, said it could be some time before customers can access services as normal.
He said: “It’s too early to say when there’s going to be a full return to normal for M&S. Attacks similar to what M&S is facing have taken other organisations as long as three years to fully recover from.
“Even returning to a state that seems normal to customers, albeit still in recovery behind the scenes, can take around nine months.”
M&S said in a statement that some customer details were taken in the cyber attack, such as email addresses, phone numbers and order histories.
Mr Lee warned about some of the ways criminals can use stolen data. Personal details can be used in cases of identity theft to apply for loans, credit cards or to open bank accounts in the victim’s name.
Scammers can also use stolen data such as email addresses to send out convincing phishing emails purportedly from a genuine organisation, to try to trick you into handing over personal or banking details.
The security expert warned: “M&S customers should question any email which asks them to take urgent action, such as resetting their password or providing personal information. Never click on links in suspicious emails.”
