Taxpayers Stunned as They’re Forced to Cover Shocking £862M MP Pension Bill – ‘You’re Picking Up the Tab!'”
The MPs’ pension scheme has missed its investment target by a staggering 25% last year, raising fears that taxpayers may have to cover the £862 million shortfall. New figures show the fund underperformed in the year to March 2024, sparking criticism over its heavy focus on “ethical” investments.
Reform Party deputy leader Richard Tice has slammed the scheme for putting “political ideology ahead of financial returns,” accusing it of prioritising environmental, social, and governance (ESG) goals over pensioners’ best interests. In a letter to the fund’s trustees, seen by The Telegraph, Tice warned that poor returns from ESG-focused investments—including a failed renewable energy project backed by BlackRock—have left the fund struggling to meet its benchmarks.
The MPs’ pension pot is reviewed every three years, and with performance lagging, the Treasury may soon be forced to increase taxpayer contributions to fill the gap. Since 2021 when the scheme shifted towards more sustainable investments—returns have dropped significantly.
Tice argues that many global fund managers are moving away from ESG strategies due to poor performance, yet the parliamentary scheme is doubling down. “Taxpayers will probably be forced to pick up the tab,” he warned.
While the fund’s overall value has grown from 104% to 122%, critics say this masks deeper problems with risky investments. The trustees are expected to respond to Tice’s concerns soon but with the next review looming, the question remains: will MPs finally change course, or will the public end up paying for their financial missteps?
