v3.25.4
Retirement benefits
 12 Months Ended
Dec. 31, 2025
Disclosure of defined benefit plans [abstract]  
Retirement benefits Retirement benefits
Accounting for retirement benefits
The Barclays Bank Group operates a number of pension schemes and post-employment benefit schemes.
Defined contribution – the Barclays Bank Group recognises contributions due in respect of the accounting period in the
income statement. Any contributions unpaid at the balance sheet date are included as a liability.
Defined benefit – the Barclays Bank Group recognises its obligations to members of each scheme at the period end, less the
fair value of the scheme assets after applying the asset ceiling test.
Each scheme’s obligations are calculated using the projected unit credit method. Scheme assets are stated at fair value as at
the period end.
Changes in pension scheme liabilities or assets (remeasurements) that do not arise from regular pension cost, net interest
on net defined benefit liabilities or assets, past service costs, settlements or contributions to the scheme are recognised in
other comprehensive income. Remeasurements comprise experience adjustments (differences between previous actuarial
assumptions and what has actually occurred), the effects of changes in actuarial assumptions, return on scheme assets
(excluding amounts included in the interest on the assets) and any changes in the effect of the asset ceiling restriction
(excluding amounts included in the interest on the restriction).
The cost of providing healthcare benefits to retired employees is accrued as a liability in the financial statements over the
period that the employees provide services to the Barclays Bank Group, using a methodology similar to that for defined
benefit pension schemes.
Pension schemes
UK Retirement Fund (UKRF)
The UKRF is the Barclays Bank Group’s main scheme, representing 96% (2024: 96%) of the Barclays Bank Group’s total
retirement benefit obligations.
Between 1 January 2025 and 30 June 2025, Barclays Bank PLC was the principal employer of the UKRF, with Barclays Bank
UK PLC and Barclays Execution Services Limited as the participating employers.
From 1 July 2025 the UKRF was amended to become a sectionalised scheme to meet the requirements of the Financial
Services and Markets Act 2000 (Banking Reform) (Pensions) Regulations 2015, creating two separate sections - the Barclays
Bank Section and the Barclays UK Section. From 1 July 2025, Barclays Bank PLC participates in the Barclays Bank Section only
(as principal employer). As a result of sectionalisation, £750m of UKRF assets were allocated to the Barclays UK Section,
along with £697m of benefit obligation relating to Barclays Bank UK PLC active employees. This resulted in a settlement loss
of £53m impacting profit before tax for the Barclays Bank Group. The sectionalisation means that Barclays Bank PLC is
separated from any exposure to the Barclays UK Section of the UKRF.
The UKRF was closed to new entrants on 1 October 2012, and comprises a number of different benefit categories, the two
most significant of which are:
▪Afterwork, which comprises a contributory cash balance defined benefit element, and a voluntary defined contribution
element. The cash balance element is accrued each year and revalued until Normal Retirement Age in line with the
increase in Retail Price Index (RPI) (up to a maximum of 5% p.a.). The risks that the Barclays Bank Group is exposed to in
relation to Afterwork are limited although additional contributions are required if pre-retirement investment returns are
not sufficient to provide for the benefits.
▪The 1964 Pension Scheme. Most UK employees recruited before July 1997 built up benefits in this non-contributory
defined benefit scheme in respect of service up to 31 March 2010. Pensions were calculated by reference to service and
pensionable salary. From 1 April 2010, members became eligible to accrue future service benefits in either Afterwork or
the Pension Investment Plan, a historic defined contribution section which is now closed to future contributions. The risks
that the Barclays Bank Group is exposed to in relation to the 1964 Pension Scheme are typical of final salary pension
schemes, principally that investment returns fall short of expectations, that inflation exceeds expectations, and that
retirees live longer than expected.
Barclays Pension Savings Plan (BPSP)
The BPSP is a defined contribution scheme providing benefits for all new UK hires from 1 October 2012. BPSP is not subject
to the same investment return, inflation or life expectancy risks for the Barclays Bank Group that defined benefit schemes
are. Members’ benefits reflect contributions paid and the level of investment returns achieved.
Other
Apart from the UKRF and the BPSP, the Barclays Bank Group operates a number of smaller pension and long-term employee
benefits and post-retirement healthcare plans globally, the largest of which are the US defined benefit and defined
contribution schemes. Many of the schemes are funded, with assets backing the obligations held in separate legal vehicles
such as trusts. Others are operated on an unfunded basis. The benefits provided, the approach to funding, and the legal
basis of the schemes, reflect local environments.
Governance
The UKRF operates under trust law and is managed and administered on behalf of the members in accordance with the
terms of the Trust Deed and Rules and all relevant legislation. The Trustee is Barclays Pension Funds Trustees Limited, a
private limited company and a wholly owned subsidiary of Barclays Bank PLC. The Trustee is the legal owner of the assets of
the UKRF which are held separately from the assets of the Barclays Bank Group.
The Trustee of the UKRF comprises six Management Directors selected by Barclays Bank PLC, of whom three are
independent Directors with no relationship with the Barclays Bank Group (and who are not members of the UKRF), plus
three Member Nominated Directors selected from eligible active, deferred or pensioner members of the UKRF, who apply for
the role.
The BPSP is a group personal pension arrangement which operates as a collection of personal pension plans. Each personal
pension plan is a direct contract between the employee and the BPSP provider (Legal & General Assurance Society Limited),
and is regulated by the FCA.
Similar principles of pension governance apply to the Barclays Bank Group’s other pension schemes, depending on local
legislation.
Amounts recognised
The following tables include amounts recognised in the income statement and an analysis of benefit obligations and scheme
assets for all Barclays Bank Group defined benefit schemes. The net position is reconciled to the assets and liabilities
recognised on the balance sheet. The tables include funded and unfunded post-retirement benefits. The income statement
charge with respect to defined contribution schemes is disclosed as part of footnotes to Note 28 Staff costs.
Income statement charge/(credit)
2025
2024
2023
£m
£m
£m
Current service cost
122
150
119
Net finance income
(163)
(157)
(222)
Curtailments or Settlements1
53
—
—
Other movements
1
1
(1)
Total
13
(6)
(104)
Note
1  Settlement loss arising from allocation of a portion of the UKRF assets and liabilities to the Barclays UK Section of the UKRF on account of
sectionalisation effective from 1 July 2025, for which Barclays Bank UK PLC are now responsible for.
Barclays Bank PLC is the principal employer of the Barclays Bank Section of the UKRF (and the Whole of the UKRF until
H1'2025) and hence Scheme Assets and Defined Benefit Obligations relating to the Barclays Bank Section of the UKRF are
recognised within the Barclays Bank Group. Where Barclays Bank PLC is the principal employer, participating employers
Barclays Bank UK PLC (until H1'2025) and Barclays Execution Services Limited bear their share of the service cost. Of the
£135m current service cost in the table below, £9m relates to Barclays Bank UK PLC and £4m relates to Barclays Execution
Services Limited. While the entire current service cost obligation is accounted for in the Barclays Bank Group, the income
statement charge is accounted for across all the participating employers.
From 1 July 2025, current service cost and obligation attributable to Barclays Bank UK PLC are not included within the results
of  Barclays Bank Group.
Balance sheet reconciliation
2025
2024
Barclays Bank
Group Total
Of which relates to
Barclays Bank
Section of the
UKRF
Barclays Bank
Group Total
Of which relates to
UKRF
£m
£m
£m
£m
Benefit obligation at beginning of the year
(19,524)
(18,729)
(21,420)
(20,618)
Current service cost
(135)
(120)
(168)
(155)
Interest costs on scheme liabilities
(1,005)
(975)
(930)
(901)
Curtailments or settlements1
697
697
—
—
Remeasurement gain - financial
541
546
1,804
1,797
Remeasurement (loss)/gain - demographic
(59)
(47)
12
13
Remeasurement loss - experience
(197)
(203)
(55)
(54)
Employee contributions
(5)
—
(6)
—
Benefits paid
1,197
1,158
1,226
1,189
Exchange and other movements
15
(1)
13
—
Benefit obligation at end of the year
(18,475)
(17,674)
(19,524)
(18,729)
Fair value of scheme assets at beginning of the year
22,623
21,928
24,914
24,234
Interest income on scheme assets
1,168
1,143
1,087
1,062
Employer contribution
29
16
37
22
Settlements1
(750)
(750)
—
—
Remeasurement - return on scheme assets less than
discount rate
(299)
(310)
(2,192)
(2,184)
Employee contributions
5
—
6
—
Benefits paid
(1,189)
(1,158)
(1,221)
(1,189)
Exchange and other movements
(29)
(14)
(8)
(17)
Fair value of scheme assets at end of the year
21,558
20,855
22,623
21,928
Net surplus
3,083
3,181
3,099
3,199
Retirement benefit assets
3,240
3,181
3,263
3,199
Retirement benefit liabilities
(157)
—
(164)
—
Net retirement benefit assets
3,083
3,181
3,099
3,199
Note
1  Settlement loss arising from allocation of a portion of the UKRF assets and liabilities to the Barclays UK Section of the UKRF on account of
sectionalisation effective from 1 July 2025, for which Barclays Bank UK PLC are now responsible for.
Included within the Barclays Bank Group’s benefit obligation is £703m (2024: £695m) relating to overseas pensions and
£98m (2024: £99m) relating to other post-employment benefits.
Barclays previously considered the potential implications for the UKRF of the ruling and appeal in Virgin Media v NTL
Pension Trustees II Ltd. This activity did not identify any relevant amendments to the UKRF (of the nature of that found to
have been void in the Virgin Media case) that were not subject to actuarial confirmation. Since this activity was completed
the Pension Schemes Bill 2025 (the Bill) has been published, which once in force will enable trustees to obtain retrospective
actuarial confirmation in certain circumstances. Progress of the Bill continues to be tracked by Barclays. The position
remains that no material additional benefit obligation is expected.
Breakdown of the Barclays Bank Section of the UKRF benefit obligation
2025
2024
Barclays Bank
Section
UKRF Total
£m
£m
Active members   
981
1,699
Deferred members (Afterwork)
1,828
1,716
Deferred members (Non-Afterwork)
3,786
4,269
Pensioners and Dependents
11,079
11,045
Total Barclays Bank Section of the UKRF benefit obligation at end of the year
17,674
18,729
As at 31 December 2025, the Barclays Bank Section of the UKRF’s scheme assets were in surplus versus IAS 19 obligations
by £3,181m (2024 whole UKRF: £3,199m).
The weighted average duration of the benefit payments reflected in the defined benefit obligation for the Barclays Bank
Section of the UKRF is 11 years (2024: 11 years). The Barclays Bank Section's expected benefits promised to date are
projected to be paid out for in excess of 50 years, although 35% of the benefits are expected to be paid in the next 10 years;
34% in years 11 to 20 and 20% in years 21 to 30. The remainder of the benefits are expected to be paid beyond 30 years.
Of the £1,158m (2024: £1,189m) benefits paid out, £145m (2024: £165m) related to transfers out.
Where a scheme’s assets exceed its obligation, an asset is recognised to the extent that it does not exceed the present value
of future contribution holidays or if the Group has an unconditional right to a refund of this asset at the end of the life of the
plan (the asset ceiling). In the case of the Barclays Bank Section of the UKRF the asset ceiling is not applied as, in certain
specified circumstances such as wind-up, the Barclays Bank Group expects to be able to recover any surplus or reduce
contributions. Similarly, a liability in respect of future minimum funding requirements is not recognised. The Trustee does
not have a substantive right to augment benefits, nor do they have the right to wind-up the plan except in the dissolution of
Barclays Bank PLC or termination of contributions by Barclays Bank PLC. The application of the asset ceiling to other plans
and recognition of additional liabilities in respect of future minimum funding requirements are considered on an individual
plan basis.
Critical accounting estimates and judgements
Key areas involving a higher degree of judgement or estimation include:
Estimates
Valuation of defined benefit scheme obligations are dependent on a number of assumptions, the most critical being discount rates, price inflation,
and life expectancy.
These estimates are considered to have a significant risk of resulting in a material adjustment to the carrying amount of
defined benefit obligations within the next financial year.
Below is a summary of the main financial and demographic assumptions adopted for the Barclays Bank Section of the UKRF.
Key financial assumptions
2025
2024
Barclays Bank
Section
Total UKRF
% p.a.
% p.a.
Discount rate
5.46
5.44
Inflation rate (RPI)
2.92
3.32
The Barclays Bank Section of the UKRF discount rate assumption for 2025 was based on a standard WTW RATE Link model.
The RPI inflation assumption for 2025 was set by reference to the Bank of England’s implied inflation curve. The inflation
assumption incorporates a deduction of 20 basis points as an allowance for an inflation risk premium. The methodology
used to derive the discount rate and inflation assumptions is consistent with that used at the prior year end.
The Barclays Bank Section of the UKRF post-retirement mortality assumptions are based on best estimates derived from an
analysis in 2022 of the UKRF’s own post-retirement mortality experience and taking account of recent evidence from
published mortality surveys. An allowance has been made for future mortality improvements based on the 2024 core
projection model published by the Continuous Mortality Investigation Bureau subject to a long-term trend of 1.10% per
annum in future improvements (2024: 1.25% per annum). The table below shows how the assumed life expectancy, for
members of the Barclays Bank Section of the UKRF (2024: whole UKRF), has changed since last year:
Assumed life expectancy1
2025
2024
Life expectancy at 60 for current pensioners (years)
– Males
26.6
26.5
– Females
29.3
29.4
Life expectancy at 60 for future pensioners currently aged 40 (years)
– Males
28.0
28.0
– Females
30.6
30.8
Note:
1  The life expectancies disclosed are in respect of a population of the membership that represents c60% of the Defined Benefit Obligation of the
Barclays Bank Section of the UKRF (excluding the Afterwork section which has no post-retirement mortality risk) with the remaining members
having life expectancy at age 60 of between 26.4 years and 29.3 years.
Approximately, 70% of the longevity risk for current pensioners has been reinsured and the transactions will provide income
to the Barclays Bank Section of the UKRF if pensions are paid out for longer than expected. The contracts form part of the
investment portfolio.
Sensitivity analysis on actuarial assumptions
The sensitivity analysis has been calculated by valuing the Barclays Bank Section of the UKRF liabilities using the amended
assumptions shown in the table below and keeping the remaining assumptions the same as disclosed in the table above,
except in the case of the inflation sensitivity where other assumptions that depend on assumed inflation have also been
amended correspondingly. The difference between the recalculated liability figure and that stated in the balance sheet
reconciliation table above is the figure shown. The selection of these movements to illustrate the sensitivity of the defined
benefit obligation to key assumptions should not be interpreted as the Barclays Bank Group expressing any specific view of
the probability of such movements happening.
Change in key assumptions for the Barclays Bank Section of the UKRF (2024: whole UKRF)
2025
2024
(Decrease)/Increase in
defined benefit
obligation
(Decrease)/Increase in
defined benefit
obligation
£bn
£bn
Discount rate
0.5% p.a. increase
(0.9)
(1.0)
0.25% p.a. increase
(0.4)
(0.5)
0.25% p.a. decrease
0.5
0.5
0.5% p.a. decrease
1.0
1.1
Assumed RPI
0.5% p.a. increase
0.7
0.7
0.25% p.a. increase
0.3
0.3
0.25% p.a. decrease
(0.3)
(0.4)
0.5% p.a. decrease
(0.6)
(0.7)
Life expectancy at 60
One year increase
0.5
0.5
One year decrease
(0.5)
(0.5)
Assets
A long-term investment strategy has been set for both the Section of the UKRF, with its asset allocation comprising a
mixture of gilts, bonds, property and other appropriate assets. This strategy recognises that different asset classes are likely
to produce different long-term returns and some asset classes may be more volatile than others. The long-term investment
strategy ensures, among other aims, that investments are adequately diversified.
The value of the assets of the schemes and their percentage in relation to total scheme assets were as follows:
Analysis of scheme assets
Barclays Bank Group Total
Of which relates to Barclays Bank Section of the
UKRF
Quoted1
Unquoted1,2
Value
% of total
fair value
of
scheme
assets
Quoted1
Unquoted1,2
Value
% of total
fair value
of
scheme
assets
£m
£m
£m
%
£m
£m
£m
%
As at 31 December 2025
Bonds - fixed government
1,926
4
1,930
9.0
1,721
4
1,725
8.3
Bonds - index-linked government
7,765
—
7,765
36.0
7,751
—
7,751
37.2
Bonds - corporate and other3
1,676
4,729
6,405
29.7
1,471
4,729
6,200
29.7
Equities
128
—
128
0.6
—
—
—
—
Private equities 
—
1,859
1,859
8.6
—
1,859
1,859
8.9
Property
22
1,392
1,414
6.6
—
1,392
1,392
6.7
Infrastructure
—
414
414
1.9
—
413
413
2.0
Hedge funds
13
1,635
1,648
7.6
—
1,635
1,635
7.8
Derivatives
1
(1,478)
(1,477)
(6.9)
—
(1,478)
(1,478)
(7.1)
Longevity reinsurance contracts
—
(103)
(103)
(0.5)
—
(103)
(103)
(0.5)
Cash and liquid assets4
2,292
(830)
1,462
6.8
2,288
(830)
1,458
7.0
Mixed investment funds
—
—
—
—
—
—
—
—
Other
15
98
113
0.6
—
3
3
—
Fair value of scheme assets5
13,838
7,720
21,558
100.0
13,231
7,624
20,855
100.0
As at 31 December 2024
Bonds - fixed government
1,546
—
1,546
6.8
1,306
—
1,306
6.0
Bonds - index-linked government
8,234
—
8,234
36.4
8,214
—
8,214
37.5
Bonds - corporate and other
5,604
717
6,321
27.9
5,395
717
6,112
27.9
Equities
121
—
121
0.5
—
—
—
—
Private equities 
—
2,134
2,134
9.4
—
2,134
2,134
9.7
Property
19
1,238
1,257
5.6
—
1,238
1,238
5.6
Infrastructure
—
1,388
1,388
6.1
—
1,388
1,388
6.3
Hedge funds
9
1,390
1,399
6.2
—
1,390
1,390
6.3
Derivatives
(7)
(1,799)
(1,806)
(8.0)
(7)
(1,799)
(1,806)
(8.2)
Longevity reinsurance contracts
—
(117)
(117)
(0.5)
—
(117)
(117)
(0.5)
Cash and liquid assets4
(454)
2,529
2,075
9.2
(464)
2,529
2,065
9.4
Mixed Investment funds
8
—
8
—
—
—
—
—
Other
7
56
63
0.4
—
4
4
—
Fair value of scheme assets5
15,087
7,536
22,623
100.0
14,444
7,484
21,928
100.0
Notes:
1.During the year ended 31 December 2025, there were c£3bn assets re-classified from unquoted to quoted under cash and liquid assets and
c£4bn assets reclassified from quoted to unquoted for Bonds - corporate and other (year ended 31 December 2024: there were no material re-
classifications). These re-classifications reflect enhancement to the Bank’s levelling policy, including the use of additional data in the active
market assessment of issued debt.
2.Valuation of unquoted assets is provided by the underlying managers or qualified independent valuers. The valuation for some of the unquoted
assets, in particular private equities, is based on valuations as at 30 September 2025 adjusted by cash flows, these being the latest available
valuations as at the point of publication. All valuations are determined in accordance with relevant industry guidance. Barclays Bank Group does
not believe these valuations will differ materially from the fair value, in the context of the overall Barclays Bank Section asset size.
3.During the year ended 31 December 2025, there were c£740m of infrastructure loan assets reclassified to Bonds - corporate and other (2024
classification : Infrastructure).
4.Cash and liquid assets for the Barclays Bank Section of the UKRF consist of £186m (2024: £484m) of cash including receivables/payables,
£2,102m (2024: £2,529m) of pooled cash funds and £(830)m (2024: £(948)m) of repurchase agreements.
5.Included within the fair value of the Barclays Bank Section of the UKRF scheme assets was nil (2024: nil) relating to shares in Barclays PLC and nil
(2024: nil) relating to bonds issued by Barclays PLC or Barclays Bank PLC. The UKRF also invests in pooled investment vehicles which may hold
shares or debt issued by Barclays PLC.
At 31 December 2025, 39% of the Barclays Bank Section of the UKRF assets were invested in liability-driven investment
strategies; primarily UK gilts as well as interest rate and inflation swaps. These swaps are used to better match the assets to
its liabilities. The swaps are used to reduce the scheme’s inflation and duration risks against its liabilities.
The Barclays Bank Section of the UKRF employs derivative instruments, where appropriate, to match assets more closely to
liabilities, or to achieve a desired exposure or return. The value of assets shown reflects the assets held by the Barclays Bank
Section, with any derivative holdings reflected on a fair value basis. The Trustee also uses repurchase agreements and
reverse repurchase agreements to achieve the liability hedging objective.
The Barclays Bank Section of the UKRF has a comprehensive and robust liquidity framework in place. The aim of the liquidity
framework is to ensure that benefit payments and other liquidity outflows are paid in due course, sufficient liquidity and
collateral is maintained to achieve strategic allocation targets and that all liquidity outflows/collateral needs are covered
without forced sale or strategic asset allocation changes.
The Barclays Bank Section of the UKRF holds two longevity reinsurance contracts covering 70% of the current pensioner
liabilities. The contracts provide income to the Barclays Bank Section if pensions are paid out for longer than expected. At
31 December 2025, the combined value of the contracts was £(103)m (2024: £(117)m). The negative value reflects the
estimated impact of changes in the reinsurance market, demographic assumptions and risk premia since the contracts were
entered into.
For information on the UKRF Trustee’s approach to Responsible Investment and Climate Risk, in the context of managing the
UKRF, please refer to the UKRF Trustee website at https://epa.towerswatson.com/accounts/barclays/public/barclays-bank-
responsible-investment-policy/.
Funding valuation
The UKRF annual funding update as at 30 September 2024 showed a funding surplus of £1.75bn. The 30 September 2025
funding update is not available at the date of this report, as the triennial funding valuation for the Barclays Bank Section of
the UKRF is due to be completed in 2026 with an effective date of 30 September 2025.
The main differences between the funding and accounting assumptions are a different approach to setting the discount rate
and a more conservative life expectancy assumption for funding.
As part of the 2022 triennial funding valuation, the Trustee and Barclays Bank PLC agreed an annual adequacy test on a
basis more prudent than the IAS 19 or funding bases. Should the Barclays Bank Section of the UKRF be sufficiently funded
on this basis, the regular employer contributions to the Barclays Bank Section to fund future Afterwork accrual will not be
required in the following calendar year. The test will be reviewed at the 2025 triennial valuation. The test was passed in
September, so no regular employer contributions are required for 2026.
Other support measure agreed
Collateral – Barclays Bank PLC has entered into an agreement with the Trustee of the UKRF to provide collateral to cover at
least 100% of any funding deficit with an overall cap of £8.4bn. The collateral pool is currently zero reflecting the surplus
funding position. The arrangement provides the Barclays Bank Section of the UKRF with dedicated access to the pool of
assets in the event of Barclays Bank PLC not paying any required deficit reduction contribution or in the event of Barclays
Bank PLC’s insolvency.
Contributions
There were nil (2024: nil) Section 75 contributions included within the Barclays Bank Group’s contributions paid.
The Barclays Bank Group’s expected contribution to the Barclays Bank Section in respect of defined benefits in 2026 is
£11m.