The Pulse Newsletter April 2026: Pension UK Economic and Policy Developments – From Inflation Pressures to Energy Transition

The April pulse is here!

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Brief updates on the macro environment, markets and key ESG developments are below:

Global and UK Growth Outlook deteriorates due to Middle East Conflict

• The downward revision to growth reflects the ongoing conflict in the Middle East and its impact on global energy supply.

• The International Monetary Fund (IMF) published its latest World Economic Outlook in mid-April. The IMF expects UK growth to slow from 1.3% in 2025 to 0.8% this year, highlighting a weaker global growth outlook alongside rising inflationary pressures.

Cost of Living Support Measures Announced

• Overall, these measures provide timely support, but continued monitoring will be needed as cost pressures persist across the economy.

• The UK Government has announced new measures to help ease cost of living pressures for households across the country.

• The National Living Wage was raised  to £12.71, energy bills have been cut by an average of £117 a year for millions of households. The Crisis & Resilience Fund, which provides grants to local authorities to support preventative community services and help individuals facing financial hardship, has been launched and prescription prices have been frozen.

UK Inflation Rises and BoE Rate Update Amid Conflict

• The Middle East conflict already had an impact on UK prices, with annual consumer price inflation (CPI basis) accelerating from 3% in February to 3.3% in March, significantly above the Bank of England’s inflation target range of 2% +/- 1 percentage point. This increase was driven largely by higher motor fuel costs, reflecting a rise in global oil prices.
• Against the uncertain background, the Bank of England (BoE) decided to leave its key policy rate unchanged at 3.75% at its late-April meeting. Looking ahead, it remains to be seen whether the jump in energy prices will be short-lived or be more permanent.
• If the latter, a prolonged increase could push up inflation expectations and lead to broader price pressures, as seen during the cost-of-living crisis following the Russian invasion of Ukraine, highlighting the challenge the Bank now faces in keeping inflation under control.

Pension Schemes Bill Nears Completion Amid Parliamentary “Ping Pong” Stage

• The Pension Schemes Bill has passed through the UK Parliament following the “ping pong” stage, where both Houses agreed on its final wording.

• A key part of the Government’s pensions reform agenda, the Bill aims to strengthen the private pensions system. Its passage has been closely watched given its implications for the pensions sector, the wider economy and local authorities.

• Over time, the reforms are expected to improve scheme resilience and support greater investment across the UK economy, marking a step toward aligning the pensions sector more closely with broader economic growth objectives.

• Attention is also turning to the upcoming interim report from the Pensions Commission, which is expected to provide further insight into the future direction of UK pensions.

Devolution Reforms for England Continue to Progress

• The English Devolution and Community Empowerment Bill is progressing through Parliament and has also returned to the House of Commons as part of the final “ping pong” stage.
• The bill aims to establish a more consistent approach to devolution across England by introducing a new, nationwide tier of strategic authorities with greater powers over local decision-making.
• Alongside this, the government’s ambitions for a new generation of towns set out in the New Towns Draft Programme, highlighting how these strengthened local structures could play a central role in delivering large-scale housing developments and supporting regional growth.
• The outcome is being closely watched, with local authorities particularly interested to see how powers, funding and responsibilities will be allocated.

Clean Energy Transition Accelerates

• For the Government the second fossil fuel price shock in five years, provides motivation to accelerate its clean energy transition -a direct response to ongoing volatility in global energy markets and key for long-term economic security.
• The Government aims for the shift to be supported by over £90 billion in private sector investment, reinforcing efforts to reduce reliance on unpredictable international fuel markets and to strengthen energy resilience. Indicating a structural shift in the UK’s energy model towards more stable pricing and greater domestic energy supply.

We hope you find this update valuable.

If you have any questions for Camdor Global Advisors, please don’t hesitate to leave a comment down below, get in touch or check out our LinkedIn and website for more information.

We’re always happy to chat and assist where we can.

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