The government is proposing to ease restrictions on how some pension schemes are managed, as part of efforts to boost economic growth. The Treasury said defined benefit pension schemes have a total surplus of £160bn, but under current rules much of the money is trapped and cannot be invested in the wider economy.

British Prime Minister Keir Starmer and finance minister Rachel Reeves will meet business leaders on Tuesday to announce pension sector reforms that they hope will boost economic growth and investment.

Last year, Reeves unveiled reforms to local government and defined contribution pensions to create larger pools of money that can take more risk in a bid to accelerate economic growth. However, the changes will take time while the surpluses in defined benefit funds are available now.

Restrictions on surplus cash in pension schemes could be eased to get more money into the economy.

In an effort to free up billions of pounds that are now locked up in defined benefit plans, the UK government has announced measures to change pension regulations. In line with the government’s increasing emphasis on wealth creation,