Seventeen pension providers, managing around 90% of active workplace savers’ defined contribution pots, are backing the deal which doubles last year’s investment target and ringfences a minimum £25bn for UK projects by 2030.

The move aims to channel billions into clean energy, science, tech and infrastructure.

Under the new Accord, providers have pledged to commit at least 10% of their workplace pension funds to private market assets, with at least 5% specifically invested in the UK economy.

The fresh push is part of the Government’s wider Plan for Change, and comes ahead of the final Pensions Investment Review, which will propose reforms to create mega pension funds capable of competing globally.

Chancellor Rachel Reeves said: “I welcome this bold step by some of our biggest pension funds, which will unlock billions for major infrastructure, clean energy, and exciting startups — delivering growth, boosting pension pots, and giving working people greater security in retirement.”

Minister for Pensions Torsten Bell added: “This supports better outcomes for savers and faster growth for Britain.”

The new deal builds on the 2023 Mansion House Compact, which set a 5% voluntary investment target in unlisted firms. The new Accord widens participation across the industry and increases the target to 10%, with a clearer UK focus.

The Association of British Insurers said the industry is ready to do more, but urged the government to “tackle barriers” and ensure a strong pipeline of investment-ready UK opportunities.

Amanda Blanc, Aviva chief executive officer, said: “This is a major opportunity for the pension and investment industry to support UK growth while delivering improved outcomes for pension savers.

“As a significant investor in private markets, Aviva has recently launched a number of funds to give over four million workplace pension customers even greater opportunity to invest in UK assets, including innovative, early-stage businesses, and we want to do much more.”