Torsten Bell: The reforms are a major milestone that will release the untapped potential of the LGPS
The government has laid regulations to introduce new requirements to overhaul the way Local Government Pension Scheme (LGPS) funds are managed and invested.
The Ministry of Housing, Communities and Local Government (MHCLG) said the secondary legislation – laid before parliament yesterday (21 May) and set to come into force on 30 June – would mark a "significant milestone" in the Fit for the Future reforms to the LGPS.
It said the changes will mean LGPS funds will be legally required to pool their assets together for the first time.
The MHCLG said the stronger oversight of LGPS funds as well as new measures on local investment and minimum standards for asset pooling would ensure people's pension money is properly looked after and invested back into local communities.
Minister for local government and homelessness Alison McGovern said: "Those working on the front line in our local communities are unsung heroes, and they deserve a pension scheme that works as hard as they do.
"These reforms will do exactly that – providing better returns, putting money back into local communities, and driving economic growth that people can actually feel."
Minister for pensions Torsten Bell added: "The reforms are a major milestone that will release the untapped potential of the local government pension scheme, ensuring its £400bn of assets are managed effectively on behalf of members and driving economic growth across the country."
The regulations follow on from MHCLG's technical consultation on the Fit for the Future reforms that was launched in November 2025.
The consultation sought views on two draft statutory instruments – the LGPS (Pooling, Management and Investment of Funds) Regulations 2026 and the LGPS (Amendment) Regulations 2026.
Following consultation feedback, the MHCLG said the government has adjusted implementation timescales to reflect what is practically achievable – giving funds more time to transfer assets to pool management, publish investment strategies, and fill new governance roles.
These amended regulations have now been laid in parliament and will come into force on 30 June.
The government's full response to the technical consultation can be found here.
