The government has brought together twenty of the UK’s largest pension funds and insurance companies under a new partnership called Sterling 20. The idea is to direct long-term savings into projects that can support economic growth across the country. Housing, infrastructure and technology are the main priorities, but broadband is also on the list.
Nest, which manages pensions for nearly half of the UK’s working population, has already made the first move. It has committed £40 million to expand fibre broadband across rural parts of Scotland and northern England. The government hopes this will set the tone for more investments that can help fill gaps left by existing rollout schemes.
Broadband focus
The details of how the £40 million will be spent have not yet been confirmed. What is clear is that the focus will be on areas that remain difficult to reach through commercial builds and subsidy programmes. Nest has said its investment is aimed at extending fibre into communities that are often left behind because the cost of installation is too high for commercial operators.
While other Sterling 20 members have yet to announce broadband-specific contributions, the government has made clear that digital infrastructure is a key part of its strategy. Alongside broadband, commitments so far include a £2 billion pledge from Legal & General to fund 10,000 affordable homes by 2030.
How it links with Project Gigabit
Project Gigabit is the government’s ongoing programme to extend gigabit broadband across the UK. Its target is to achieve near-universal coverage by 2030. At present, Ofcom reports that over 88% of premises can already access gigabit speeds, with forecasts suggesting this will rise to 97–98% by 2027 if rollout continues as planned.
Sterling 20’s investment is not a replacement for Project Gigabit but an extra boost. The state-funded programme covers the bulk of rural builds, but there are still areas that remain too remote or costly even for subsidised contracts. Nest’s contribution could help address some of these locations, though the specific role of private pension funding in this space is still to be set out.
The hardest areas to connect
Even with Project Gigabit and commercial rollouts, there is a small percentage of homes and businesses that are classed as “very hard to reach.” This covers places where installation costs are disproportionately high because of terrain, distance from existing networks or very low population density. Estimates suggest this may account for about 0.3% of UK premises.
At the moment, the government has not defined a clear strategy for connecting these properties. Satellite broadband and fixed wireless are currently being used as alternatives, but long-term solutions may need new funding models. Pension-led investment could become part of that conversation, though decisions have yet to be made.
Wider pension investment strategy
The Sterling 20 group is part of a wider effort to get pension schemes to invest more in UK infrastructure and high-growth businesses. In July 2025, the Mansion House Accord saw several providers agree to put at least 5% of their default funds into UK private markets, representing tens of billions in new investment.
The government has since added new measures to steer more capital into science and technology, including the launch of an Innovation Cluster Map to identify regional opportunities. Broadband, alongside AI and fintech, is being presented as one of the areas that could benefit from this push.
Future outlook
Chancellor Rachel Reeves is expected to provide more detail during the Regional Investment Summit in Birmingham. More information is due on how the Sterling 20 funding will be allocated, what role it will play alongside Project Gigabit, and whether other pension funds will follow Nest’s lead in backing broadband projects.
For now, the £40 million pledge is a sign that private investors are starting to take a bigger role in closing the digital divide. How much difference it makes will depend on whether further funding is committed and how effectively it can be aligned with the government’s national rollout plans.
