Pensions recover – but it’s woe for BT

Britain’S pension black hole shrank by £33bn in the last year as markets shrugged off Brexit turbulence and an interest rate cut, figures show.

Lucrative defined benefit schemes across the UK were £176bn in the red at the end of June, according to research by pension consultants, JLt employee Benefits.

this is down from £209bn a year earlier, partly due to better returns on Government bonds, or gilts, which have improved markedly since the trading panic after the european Union referendum. Meanwhile, FtSe 100 companies saw their deficits shrink from £61bn to £46bn.

However, not every firm has recovered at the same pace. telecom giant Bt’s deficit – one of the largest in the Footsie – hit £7.6bn at the end of March, up from £5.2bn a year earlier.

the Pensions regulator vowed to act if firms are prioritising pay-outs to shareholders over plugging their funding gaps. it has recovered more than £1bn for defined benefit schemes since 2005.