The Wales Pension Partnership (WPP) has launched a new investment company pooling the assets of 22 Local Authorities' Schemes, in a move that is expected to help deliver growth and jobs across Wales.

The Department for Work and Pensions (DWP) said that the WPP is being "transformed", becoming the biggest pension fund in Welsh history, which in turn has made it capable of delivering huge investments felt first-hand by businesses and communities in Wales.

The DWP also said that, by setting up this investment company in Wales, the investment decisions the fund makes can reflect the unique cultural and economic climate of Wales.

It also suggested that the company will be better placed to collaborate with local businesses to invest in communities and delivering growth – making sure the Local Government Pension Scheme (LGPS) is delivering for those whose money it guards, and their communities.

As an example of this, it pointed out that WPP has made a £6.5m investment for the redevelopment of a coal fired power station into a sustainable energy site, creating 300 new full-time jobs during construction driving economic growth and prosperity for the community.

The site, once a coal fired power station, is being repurposed to provide up to 460 megawatt hours of electricity storage capacity for the National Grid and bring a retired rail line back into service to deliver materials, saving nearly 8,400 heavy good vehicles from the local road network.

The DWP said that the investment "embraces" the spirit of change the government has asked to see from LGPS pools, with the wider pooling process for the UK’s world-class LGPS set to conclude in March 2026.

The WPP also highlighted this investment as demonstration of its ambitions to attract investment into "crucial" Welsh infrastructure and secure national energy supplies.

It also confirmed that this is just "one of many projects that we have in our investment pipeline and will be unveiling over the next 12 months".

Pensions Minister, Torsten Bell, said: “Pensions are a massive part of the economy – and we’re seeing this brought to life here in Wales, where a successful Local Government Pension Scheme is investing in the right places to drive opportunity and growth for the local community.

“I’m delighted to visit Uskmouth Power Station in Newport, which has had a £6 million boost from the Wales Pension Partnership, creating 300 jobs which mean opportunity and prosperity at a local level.

“Making sure everyone can benefit from the potential of larger pension pools ties into the ambitions of our Plan for Change to boost investment in communities across the country, bringing long-term economic benefits.”

Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans MS, also emphasised the value of a strong single Welsh Local Government Pension Scheme pool.

"We want to see the Wales Pensions Partnership continue to go from strength to strength delivering returns for members and be able to invest in economic growth for Wales and the UK," she said.

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