Updated 3pm GMT October 28 to include NWF response.

The UK’s new National Wealth Fund (NWF) wants to support pioneering technology, but a confused strategy and limited funding could be holding it back, say a group of MPs.

The Treasury Committee said conflicting comments in a Statement of Intent highlighting both “first-of-a-kind technologies” and those “at the later stages of their commercialisation” made the fund’s focus “unclear”. 

In a report published Tuesday, it said evidence showed “a focus on technologies at a later stage of commercialisation might prevent NWF being used to stimulate investment in some nascent technologies.”

However, evidence given to the committee by the New Economics Foundation also highlighted the need to invest in mature technologies that may still need government backing, such as offshore wind, it added.

A NWF spokesperson told The Stack: "We go into every transaction seeking to make a return in the long-term, and we have catalysed more than £16bn of private capital to date, directly enabling the creation and support of over 64,000 jobs.

 “Our ability to take risk has grown alongside our remit, meaning we can better support first-of-a-kind technologies and nascent sectors, as well as established markets where there are capacity limits, unlocking further investment."

The National Wealth Fund

After a manifesto commitment in the 2024 election, the government adapted the UK Infrastructure Bank (UKIB) to launch the NWF in October 2024 with a focus on mobilising investment at a 1:3 (public:private) ratio.

It designated “digital and technologies” as one of four priority sectors for the fund, alongside clean energy, transport, and advanced manufacturing, with £27.8 billion of public capital to be invested through 2029.

NWF investments

As of October 2025, the National Wealth Fund, both as the UKIB and NWF, has made 62 total investments worth £7.5 billion.

Of those:

  • 14 projects were in the digital and tech sector
  • 26 in clean energy
  • 9 in transport
  • 6 in advanced manufacturing
  • 7 in environment and natural capital

Less data is available about projects invested in since the organisation became the NWF in October 2024. It's impact report states £3.6 billion has been invested in 22 projects but does not provide a sector breakdown.

Companies in the tech sector to receive NWF funding cover include Pragmatic Semiconductors, energy storage firm Invinity, broadband provider Quickline Communications, and high voltage direct-current (HVDC) cable manufacturer XLCC.


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However, the Treasury Committee warned the fund’s current modest size could "limit its strategic impact on economic growth”, comparing it to similar organisations in France and Germany investing 1% of GDP annually.

The panel spoke to public and private stakeholders for its investigation, ahead of the NWF’s new strategy due early 2026. While initial reaction to the fund was positive, many have been sceptical about its ability to deliver on promises

In June, tech UK said a "national digital wealth fund" was still needed to fund long-term "data infrastructure and digital innovation" projects in a green paper on digital twin technology.

A bigger risk appetite 

It found a focus on matching investments against technology readiness levels (TRL) may also limit the fund’s ability to take on risk, stating it must have the “risk appetite” to invest in projects deemed too risk by private investors.

While calling on the fund to be able to “create new markets”, such as in the hydrogen sector, it cautioned against over-scrutiny of poor returns, adding “if none of its investments fail that suggests that it does not have a sufficiently high-risk appetite.”

MPs also worried about a mixed understanding of risk levels, citing testimony from former NWF CEO John Flint that nuclear fusion was below a suitable level while Treasury Minister Lord Livermore said he did not foresee any restrictions on the technology if it met other criteria.

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