Pension Giants Unite to Back £1bn UK Science and Tech Scale-up Fund

Key Points

• A consortium of major UK pension providers has committed to explore setting up a first-of-its-kind vehicle to invest up to £1bn in scaling British science and technology businesses.
• The proposed vehicle, referred to as the UK Scale-up Fund, aims to invest in successful UK companies to deliver long-term returns for pension providers and their members.
• The British Business Bank is working alongside the pension providers to support the fund’s launch and intends to invest in partnership with the consortium.
• The Office for Investment is supporting the consortium as it develops the fund.
• Prime Minister Andy Burnham described the initiative as “a vote of confidence in British business, British talent and British ambition.”
• Business, Innovation, Science and Trade Secretary Jonathan Reynolds said the move showed Britain was “open for business, open to investment.”
• Railpen chief executive Andy Bord said the fund represented “a compelling investment opportunity” for disciplined, patient capital.
• Nest chief executive Ian Cornelius said the scheme, which serves more than 14 million members, saw “an important role for pension capital” in funding British growth companies.
• The fund is designed to connect institutional capital with founders, companies and venture managers driving innovation across the UK.
• Backers say the initiative could help create skilled jobs and support economic growth in communities across the country.

London (Britain Today News) July 28, 2026 – A consortium of some of Britain’s largest pension providers has announced it will explore establishing a first-of-its-kind investment vehicle worth up to £1bn, designed to help scale UK science and technology businesses and channel long-term pension capital into the country’s most promising innovators.

What Is the UK Scale-up Fund and How Much Money Is Involved?

The proposed vehicle, which is being referred to as the UK Scale-up Fund, would seek to invest up to £1bn in scaling British science and technology companies. The ambition behind the fund is to reach a scale sufficient to target the best opportunities emerging from UK innovation, rather than spreading smaller sums across a wider but less impactful pool of businesses. Organisers say the fund is intended to be of a size that allows it to compete for stakes in the country’s most successful and fastest-growing companies, many of which have historically looked overseas for late-stage funding once they have outgrown early venture capital support.

The fund would be structured to deliver strong long-term returns for the pension providers involved and, by extension, for the millions of individual savers whose retirement pots are managed by those schemes. By backing companies as they scale up, commercialise new technologies and expand their workforces, the vehicle is intended to support broader economic growth while also strengthening the retirement outcomes of ordinary pension savers.

Which Pension Providers Have Joined the Consortium?

The announcement brings together some of the UK’s largest pension providers in a shared commitment to explore the fund’s creation. Among those quoted publicly backing the initiative are Railpen, the pension scheme for the railway industry, and Nest, the workplace pension provider that manages retirement savings on behalf of more than 14 million members. Their involvement signals significant institutional weight behind the proposal, given the scale of assets and membership these schemes represent.

By bringing together major pension investors under a single initiative, organisers say the UK Scale-up Fund would help connect institutional capital with the companies, founders and venture capital managers who are driving the next wave of British innovation. The pooling of resources from multiple large schemes is intended to give the fund the scale and firepower needed to compete for stakes in high-growth businesses that might otherwise seek funding from overseas investors.

What Role Will the British Business Bank Play in the Fund?

As part of the initiative, the British Business Bank is working alongside the pension providers to support the launch of the fund. The Bank intends to invest in partnership with the consortium, lending both financial backing and its institutional expertise in supporting British businesses to the project. The British Business Bank has for years played a central role in supporting access to finance for smaller and growing UK companies, and its involvement here is intended to give the new fund additional credibility and delivery capability as it moves from concept towards launch.

How Is the Office for Investment Supporting the Initiative?

Alongside the British Business Bank, the Office for Investment is also supporting the consortium as it explores the development of the fund. The Office for Investment works to attract and enable major investment into the UK, and its backing of this initiative reflects the government’s broader ambition to mobilise private and institutional capital behind domestic science and technology growth. Its involvement suggests the fund is being treated as a priority within wider government efforts to strengthen the pipeline of investment available to scaling British businesses.

What Did the Prime Minister Say About the Announcement?

Prime Minister Andy Burnham welcomed the consortium’s commitment, framing it as a significant vote of confidence in the UK’s economic prospects. He said:

“Today sends a clear message: this is a vote of confidence in British business, British talent and British ambition.”

He continued:

“This new fund would help unlock good growth in every postcode, connecting pension investment with the entrepreneurs and technologies that will reindustrialise Britain and create the jobs of the future.”

Burnham added that the initiative was about more than just financial returns, linking it directly to the government’s wider growth and jobs agenda. He said:

“That means more opportunities for working people, stronger returns for savers, and more businesses choosing to start, grow and stay in Britain.”

What Did the Business Secretary Say About UK Innovation?

Business, Innovation, Science and Trade Secretary Jonathan Reynolds also commented on the announcement, positioning it within the government’s broader ambitions for the UK’s science and technology sectors. He said:

“Britain leads the way in science, technology and innovation, and we want to ensure more of our most promising businesses can start, scale and succeed here in the UK.”

Reynolds went on to describe the pension providers’ involvement as an important signal of confidence in the domestic market. He said:

“The ambition of major pension providers to back the next generation of British success stories is an important vote of confidence in UK innovation. By investing in innovative UK companies, they can help drive long-term growth while helping pension savers share in their success.”

He concluded with a direct message to prospective investors and businesses, stating:

“Our message is clear. Britain is open for business, open to investment and determined to put science, technology and innovation at the heart of our economic future.”

What Have Pension Fund Leaders Said About the Opportunity?

Leaders from the pension providers involved in the consortium set out their own rationale for backing the fund, focused primarily on delivering value for their members while also supporting the wider economy.

Andy Bord, chief executive of Railpen, said the scheme’s priority remained firmly on member outcomes, while recognising the strength of the domestic opportunity. He said:

“Our priority is always to deliver strong long-term outcomes for our members. The UK is a dynamic powerhouse of innovation. The UK Scale-up Fund represents a compelling investment opportunity where disciplined, patient capital can help growing companies scale, provide attractive returns for pension savers and generate lasting economic growth.”

Ian Cornelius, chief executive of Nest, echoed this sentiment, pointing to the UK’s track record of producing globally significant science and technology companies. He said:

“The UK is home to many innovative, high-growth businesses and has a strong track record of nurturing world-leading science and technology companies, with many of today’s global success stories founded here.”

Cornelius added:

“As a long-term investor on behalf of more than 14 million members, Nest sees an important role for pension capital in helping successful UK businesses access the funding they need to grow. We believe there can be a strong alignment between delivering attractive long-term outcomes for members and supporting innovation, job creation and economic growth across the UK.”

How Would the Fund Benefit Ordinary Pension Savers?

A central theme running through the statements from both government figures and pension fund leaders is the idea that backing British science and technology businesses need not come at the expense of strong returns for savers. Instead, organisers argue that the two goals are complementary. By investing pension capital into scaling companies with strong growth prospects, the fund is intended to generate the kind of long-term returns that could translate into larger retirement pots for millions of individual savers.

This approach reflects a wider debate in the UK pensions industry about how large pools of institutional capital, much of which has traditionally been invested overseas or in more conservative assets, might instead be directed towards domestic growth companies. Supporters of this shift argue that UK pension funds have historically underinvested in domestic private markets compared with international peers, and that initiatives such as the UK Scale-up Fund could help close that gap while keeping the benefits of British innovation within the UK economy.

Why Does the UK Need a Fund of This Scale for Science and Tech Businesses?

Organisers behind the initiative have been explicit that scale is central to its purpose. The stated ambition is for a fund large enough to target the best opportunities arising from UK innovation in science and technology, rather than a smaller vehicle that might be outcompeted for stakes in the country’s leading growth companies. Britain’s science and technology sector has long been recognised for producing world-class research and start-ups, but companies at the scale-up stage have frequently had to look to overseas investors, particularly in the United States, for the scale of capital needed to grow into global players.

By pooling resources from some of the country’s largest pension schemes, backers hope the UK Scale-up Fund can help address this so-called scale-up gap, keeping more high-growth British companies domestically owned and headquartered for longer, while also creating skilled jobs across the country as those businesses expand.
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What Happens Next for the UK Scale-up Fund?

At this stage, the announcement represents a commitment from the consortium of pension providers to explore the establishment of the fund, rather than confirmation that the vehicle has been finalised or launched. The involvement of the British Business Bank and the Office for Investment suggests that further detail on the fund’s structure, governance and investment strategy is likely to follow as the initiative progresses from concept to implementation.

Government and industry figures have framed the announcement as an important early step, with ministers keen to stress the message that the UK remains open for investment and committed to placing science, technology and innovation at the centre of its economic strategy. For the pension providers involved, the emphasis remains on ensuring that any eventual fund delivers on its dual aims of strong long-term returns for members and meaningful support for the UK’s innovation economy.

What Broader Impact Could the Fund Have on the UK Economy?

Beyond the immediate financial mechanics, those involved in the announcement have linked the fund to wider ambitions around regional growth and job creation. Prime Minister Andy Burnham specifically referenced the potential for the fund to support growth “in every postcode,” suggesting the initiative is being positioned as part of a broader strategy to spread the benefits of scaling science and technology businesses beyond London and the South East to other parts of the country.

Should the fund proceed as envisaged, its backers argue it could serve as a model for how domestic institutional capital, particularly from the pensions sector, might be mobilised in future to support other strategically important sectors of the UK economy, while continuing to prioritise the interests and retirement outcomes of the millions of savers whose money underpins these schemes.