v3.26.1
Retirement benefit obligations
 6 Months Ended
Jun. 30, 2026
Disclosure of defined benefit plans [abstract]  
Retirement benefit obligations Note 7: Retirement benefit obligations
The Group’s post-retirement defined benefit scheme obligations are comprised as follows:
At 30 Jun
2026
£m
At 31 Dec
2025
£m
Defined benefit pension schemes:
Present value of funded obligations
(25,483)
(26,571)
Fair value of scheme assets
28,262
29,183
Net pension scheme asset
2,779
2,612
Other post-retirement schemes
(35)
(37)
Total amounts recognised in the balance sheet
2,744
2,575
Recognised on the balance sheet as:
Retirement benefit assets
2,860
2,695
Retirement benefit obligations
(116)
(120)
Total amounts recognised in the balance sheet
2,744
2,575
Movements in the Group’s net post-retirement defined benefit scheme asset during the period were as follows:
£m
Asset at 1 January 2026
2,575
Income statement credit
15
Employer contributions
63
Remeasurement
91
Asset at 30 June 2026
2,744
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED) (continued)
Note 7: Retirement benefit obligations (continued)
The charge to the income statement in respect of pensions and other post-retirement benefit schemes is
comprised as follows:
Half-year
to 30 Jun
2026
£m
Half-year
to 30 Jun
2025
£m
Half-year
to 31 Dec
2025
£m
Defined benefit schemes
(15)
(15)
(22)
Defined contribution schemes
291
285
279
Total charge to the income statement
276
270
257
The principal assumptions used in the valuations of the defined benefit pension schemes were as follows:
At 30 Jun
2026
%
At 31 Dec
2025
%
Discount rate
6.03
5.57
Rate of inflation:
Retail Price Index (RPI)
2.77
2.65
Consumer Price Index (CPI)
2.33
2.13
Rate of salary increases
0.00
0.00
Weighted-average rate of increase for pensions in payment
2.61
2.52
In July 2024, the Court of Appeal handed down a judgment (Virgin Media Limited v NTL Pension Trustees Limited)
which potentially has implications for the validity of amendments made by pension schemes that were contracted
out on a salary-related basis between 6 April 1997 and the abolition of contracting-out in 2016. The Pension
Schemes Act 2026 gives affected pension schemes the ability to retrospectively obtain written actuarial
confirmation that historic benefit changes met the necessary standards. The Group has not made any allowance
for the possible impact of the ruling as it is currently unclear whether any additional liabilities might arise, and if
they were to arise, how they would be reliably measured. The Group is continuing to review scheme amendments
to decide whether any subsequent actions are required and will continue to monitor developments.