Protecting the nation’s pension benefits doesn’t just provide peace of mind for millions of workers – it also means a significant boost to the UK economy.

Frontier Economics was commissioned by the Pension Protection Fund (PPF) to assess the economic footprint of its UK-based equity and debt financing investments. Led by our financial services team, we explored the economic impact of the PPF’s investments in equity and debt financing in the UK.
 
Our analysis covered both the direct and indirect contributions of these investments. Direct contributions include their share of GDP, economic activity, employment creation, and government revenue generation. Indirectly, these investments enhance economic capacity and influence the broader economy by stimulating growth and innovation.

In our new report, we found that: 

• With around £32 billion of assets under management – nearly half (c.£15bn) of which is invested in the UK – the PPF significantly supports the UK economy, government and businesses through debt and equity-based finance. 
• The companies and assets the PPF invests in make a significant contribution to the UK’s economic output, employment and taxes;
• The PPF’s equity and debt financing investments help support £38.8bn of UK economic activity, 460,000 jobs across the UK and £7.5bn in tax contributions; and
• The PPF’s investments are spread widely across the country, benefiting all regions, and a wide range of sectors including manufacturing, construction, and infrastructure.   
   

The PPF, which is celebrating its 20th anniversary this year, takes on occupational Defined Benefit pension schemes where the employer has become insolvent and there are insufficient funds in the scheme. Their equity portfolio includes investments in companies, infrastructure, and real estate. The PPF’s debt financing activity involves corporate lending and UK Government lending through gilts.
 
Our report is published to coincide with a special Market Open at the London Stock Exchange, where members of the PPF’s Board and Executive were welcomed to mark the organisation’s 20th anniversary.
 
Click here to read the extended report, The Economic Footprint of the Pension Protection Fund.