v3.26.1
RETIREMENT BENEFIT PLANS
6 Months Ended
Jun. 30, 2026
Disclosure of net defined benefit liability (asset) [abstract]  
RETIREMENT BENEFIT PLANS 22. RETIREMENT BENEFIT PLANS
The amounts recognised in the balance sheet were as follows:
30 June 2026
31 December 2025
£m
£m
Assets/(liabilities)
Funded defined benefit pension scheme - surplus
560
524
Unfunded pension and post-retirement medical benefits
(21)
(22)
Total net assets
539
502
a) Defined contribution pension plans
An expense of £41m (H1-25: £39m) was recognised for defined contribution plans in the period and is included in staff costs within operating expenses.
b) Defined benefit pension schemes
A credit to the income statement of £10m (H1-25: £4m) was recognised for defined benefit plans in the period.
The amounts recognised in other comprehensive income were as follows:
For the half year to
30 June 2026
30 June 2025
£m
£m
(Loss) on plan assets (excluding amounts included in net interest expense)
(202)
(258)
Actuarial gains arising from changes in demographic assumptions
52
Actuarial (losses) arising from experience adjustments
(63)
(69)
Actuarial gains arising from changes in financial assumptions
223
277
Pension remeasurement
(42)
2
During the period, a buy-in transaction covering the majority of deferred and pensioner members in one of the seven sections of the main defined benefit scheme
was completed. The transaction insured benefits representing approximately 20% of the total defined benefit obligation. The qualifying insurance policy is
included within plan assets. As the premium paid exceeded the present value of the defined benefit obligation covered, a loss on plan assets is included in the
loss shown above.
The net assets recognised in the balance sheet were as follows:
30 June 2026
31 December 2025
£m
£m
Present value of defined benefit obligations
(6,974)
(7,127)
Fair value of scheme assets
7,513
7,629
Net defined benefit assets
539
502
Actuarial assumptions
The principal actuarial assumptions used for the Scheme were:
30 June 2026
31 December 2025
%
%
To determine benefit obligations1:
- Discount rate for scheme liabilities
5.9
5.6
- General price inflation
3.0
2.9
- General salary increase
1.0
1.0
- Expected rate of pension increase
2.8
2.8
Years
Years
Longevity at 60 for current pensioners, on the valuation date:
- Males
27.3
27.2
- Females
29.2
29.1
Longevity at 60 for future pensioners currently aged 40, on the valuation date:
- Males
28.8
28.7
- Females
30.7
30.6
1 The discount rate and inflation-related assumptions set out in the table above reflect the assumptions calculated based on the Scheme’s duration and cash flow profile as a whole. The actual assumptions used
were determined for each section independently based on each section’s duration and cash flow profile.
The majority of the liability movement in H1-26 was due to the increase in the discount rate, partially offset by an increase in the inflation assumption arising from
changes in market conditions as well as adverse inflation experience.
Actuarial assumption sensitivities
The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting
period, while holding all other assumptions constant.
(Decrease)/increase
30 June 2026
31 December 2025
Assumption
Change in pension obligation at period end from
£m
£m
Discount rate
50bps increase
(360)
(377)
General price inflation
50bps increase
290
305
Mortality
Each additional year of longevity assumed
185
195