Only 30% of pension schemes support the Chancellor’s Mansion House Reform plans to encourage pension schemes to invest in UK businesses, according to survey.

XPS Pensions Group said its poll of 200 pension scheme representatives attending an event this week suggested that broader engagement was needed by the Government to win pension scheme support for its plans.

XPS said that only 4% of the pension schemes surveyed after the Chancellor's speech thought more trustee training would have a large impact.

The ‘Mansion House Reforms’ - as they have been called - will encourage pension funds to pledge to invest more in UK businesses.

The reforms will also overhaul areas such as small pension pots, decumulation, auto-enrolment and also replace the PRIIPs packaged product regime with a new regime.

Trustee training is a key area that the Government is investigating as a solution to improve pension scheme investment practices such as decumulation offerings at retirement.

Close to half (43%) of those surveyed believed a fundamental change to the flexibility of funding and investment regulations was the most important change needed to allow more investment by DB schemes in UK growth assets.

Chancellor Jeremy Hunt outlined his plans for pension schemes to invest in economic growth at Mansion House on Monday. 

Mr Hunt also promised reform and simplification of the financial services rulebook to build, “the most growth-friendly regulation of any financial services centre, without compromising our commitment to stability.”

Wayne Segers, partner at XPS said, “Any fundamental change to UK pension policy requires careful scrutiny and consultation to ensure that the most important outcome – protecting the savings of members – is upheld. UK DB pension schemes are around 95% funded against insurer funding levels and have much improved security for members.

"We believe there are several policy changes that can help improve efficiencies in DB pensions, notably looking at rules on surplus to improve employee savings and investment in businesses.

“Our poll has showed that there are a variety of views within the industry, highlighting the importance of the Government seeking a range of views through an extended consultation process. Whilst we are very supportive of a rethink in policy that can help improve outcomes for members and lead to more diversity in pension investment, we believe such fundamental change should not be rushed over the summer.”

The Work and Pensions Parliamentary Select Committee is carrying out an investigation into DB pensions but this is not expected to report until next year, whereas the Government plans to announce its policy details this autumn.