PensionBee, a leading online pension provider, has responded to reports that the Chancellor, Rachel Reeves, is planning to allow companies to access surpluses in Defined Benefit (DB) pension schemes – subject to a 25% tax charge – in a move designed to unlock up to £40 billion to support the economy.

While the proposal could offer a potential source of growth capital, concerns have been raised about the implications for member security and long-term trust in the pensions system.

Romi Savova, CEO and Founder of PensionBee said: “Tapping pension surpluses to boost economic growth can be a well-considered approach – provided it doesn’t come at the expense of member security. Any approach would need to consider a range of macroeconomic scenarios, including the potential reduction of interest rates in the UK and global stock market volatility. These funds ultimately belong to pension savers and must be treated with the utmost care.

“If we're serious about unlocking pension capital to support the economy, we should be asking why more of these surpluses aren’t being passed back to savers. Putting money directly in consumers’ pockets is one of the fastest and most effective ways to stimulate real growth.

“Many companies with large defined benefit surpluses are already cash rich, so the case for allowing them to access additional funds must be watertight. The government must tread carefully – trust in pensions is hard won and easily lost.”