Skip to content Skip to footer

Loading Results

Budget 2021 | pension charge caps - "increasing flexibility would not by itself lead to a massive surge in investment in high growth projects"


Raj Mody, global head of pensions at PwC, said:

“Confirming recent rumours, we heard the Chancellor confirm today that the government will consult further on pension charge caps before the end of the year. 

“No definite changes or reforms were announced in today’s speech, but the fund management and pensions industries - as well as those creating ‘the most innovative businesses’ who would benefit from a change - will welcome today’s news. 

“A key point to note is that increasing flexibility in charge caps would not by itself lead to a massive surge in investment in higher cost and higher growth projects. For any change to work, the government would need the whole ecosystem of institutions, fund managers and savers to be behind it. 

“Savers might be supportive if it means access to better returns on their savings, but would want to ensure that the risk and returns are worth the cost - which are still to be determined. It remains to be seen how far the government will allow fund managers to go in terms of passing on a share of their performance fees to members.” 


View our full Budget reactions

About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 155 countries with over 284,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see for further details.

© 2021 PwC. All rights reserved

Contact us

Raj  Mody

Raj Mody

Global head of retirement & pensions consulting, PwC United Kingdom

Tel: +44 (0)7974 969320

Follow us