Pension schemes (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Pension schemes |
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| Schedule of pension expense excluding interest amounts |
| | | | | | | | | 2023
GBPm | | 2024
GBPm | | 2025
GBPm | Defined benefit pension expense | | 5 | | 4 | | 3 | Defined contribution pension expense | | 137 | | 140 | | 142 | Total | | 142 | | 144 | | 145 |
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| Schedule of defined benefit pension schemes |
| | | | | | | | | | | | | | | | | | | | | 2023 | | 2024 | | 2025 | | | UK
GBPm | | US
GBPm | | Total
GBPm | | UK
GBPm | | US
GBPm | | Total
GBPm | | UK
GBPm | | US
GBPm | | Total
GBPm | Service cost | | 2 | | 3 | | 5 | | 1 | | 3 | | 4 | | - | | 2 | | 2 | Past service cost/(settlement credit) | | - | | - | | - | | - | | - | | - | | 5 | | (4) | | 1 | Defined benefit pension expense | | 2 | | 3 | | 5 | | 1 | | 3 | | 4 | | 5 | | (2) | | 3 | Net interest on net defined benefit pension balance | | 1 | | - | | 1 | | - | | 1 | | 1 | | (3) | | - | | (3) | Net defined benefit pension expense/(credit) | | 3 | | 3 | | 6 | | 1 | | 4 | | 5 | | 2 | | (2) | | - |
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| Summary of actuarial assumptions |
| | | | | | | | | | | | | | | | | | | AS AT 31 DECEMBER | | 2023 | | 2024 | | 2025 | | | UK | | US | | UK | | US | | UK | | US | Discount rate | | 4.60 | % | | 5.05 | % | | 5.55 | % | | 5.55 | % | | 5.60 | % | | 5.25 | % | Inflation | | 3.05 | % | | 2.50 | % | | 3.15 | % | | 2.50 | % | | 2.90 | % | | 2.50 | % |
| | | | | | | | | AS AT 31 DECEMBER 2023 | | Male average life
expectancy | | Female average
life expectancy | | | UK | | US | | UK | | US | Member currently aged 60 years | | 85 | | 86 | | 88 | | 88 | Member currently aged 45 years | | 86 | | 86 | | 90 | | 89 | | | | | | | | | | AS AT 31 DECEMBER 2024 | | Male average life
expectancy | | Female average
life expectancy | | | UK | | US | | UK | | US | Member currently aged 60 years | | 85 | | 86 | | 89 | | 88 | Member currently aged 45 years | | 86 | | 86 | | 90 | | 89 | | | | | | | | | | AS AT 31 DECEMBER 2025 | | Male average life
expectancy | | Female average
life expectancy | | | UK | | US | | UK | | US | Member currently aged 60 years | | 85 | | 86 | | 89 | | 88 | Member currently aged 45 years | | 87 | | 87 | | 90 | | 89 |
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| Amounts recognised in the statement of financial position in respect of defined |
| | | | | | | | | | | | | | | 2024 | | 2025 | | | UK
GBPm | | US
GBPm | | Total
GBPm | | UK
GBPm | | US
GBPm | | Total
GBPm | Defined benefit obligation | | | | | | | | | | | | | At start of year | | (2,984) | | (822) | | (3,806) | | (2,710) | | (803) | | (3,513) | Service cost | | (1) | | (3) | | (4) | | - | | (2) | | (2) | Past service cost | | - | | - | | - | | (5) | | - | | (5) | Interest on pension scheme liabilities | | (133) | | (40) | | (173) | | (147) | | (41) | | (188) | Actuarial gains/(losses) on financial assumptions | | 301 | | 20 | | 321 | | 57 | | (20) | | 37 | Actuarial (losses)/gains arising from experience assumptions | | (20) | | (3) | | (23) | | (16) | | (3) | | (19) | Contributions by employees | | (7) | | - | | (7) | | (7) | | - | | (7) | Liabilities transferred on settlement | | - | | - | | - | | - | | 140 | | 140 | Benefits paid | | 134 | | 61 | | 195 | | 137 | | 60 | | 197 | Exchange translation differences | | - | | (16) | | (16) | | - | | 52 | | 52 | At end of year | | (2,710) | | (803) | | (3,513) | | (2,691) | | (617) | | (3,308) | | | | | | | | | | | | | | Fair value of scheme assets | | | | | | | | | | | | | At start of year | | 2,937 | | 834 | | 3,771 | | 2,744 | | 800 | | 3,544 | Interest income on plan assets | | 133 | | 39 | | 172 | | 150 | | 41 | | 191 | Return on assets excluding amounts included in interest income | | (240) | | (33) | | (273) | | (29) | | 32 | | 3 | Contributions by employer | | 41 | | 7 | | 48 | | 13 | | 6 | | 19 | Contributions by employees | | 7 | | - | | 7 | | 7 | | - | | 7 | Assets transferred on settlement | | - | | - | | - | | - | | (136) | | (136) | Benefits paid | | (134) | | (61) | | (195) | | (137) | | (60) | | (197) | Exchange translation differences | | - | | 14 | | 14 | | - | | (53) | | (53) | At end of year | | 2,744 | | 800 | | 3,544 | | 2,748 | | 630 | | 3,378 | | | | | | | | | | | | | | Opening net balance | | (47) | | 12 | | (35) | | 34 | | (3) | | 31 | Service cost | | (1) | | (3) | | (4) | | - | | (2) | | (2) | Net interest on net defined benefit balance | | - | | (1) | | (1) | | 3 | | - | | 3 | (Past service cost)/settlement credit | | - | | - | | - | | (5) | | 4 | | (1) | Contributions by employer | | 41 | | 7 | | 48 | | 13 | | 6 | | 19 | Actuarial (losses)/gains | | 41 | | (16) | | 25 | | 12 | | 9 | | 21 | Exchange translation differences | | - | | (2) | | (2) | | - | | (1) | | (1) | Net pension balance | | 34 | | (3) | | 31 | | 57 | | 13 | | 70 | Impact of asset ceiling | | (4) | | (6) | | (10) | | (5) | | (22) | | (27) | Overall net pension balance | | 30 | | (9) | | 21 | | 52 | | (9) | | 43 |
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| Summary of net pension obligations and net pension assets |
| | | | | | | 2024
GBPm | | 2025
GBPm | Net pension asset recognised | | 186 | | 197 | Net pension obligation | | (165) | | (154) | Overall net pension balance | | 21 | | 43 |
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| Amounts recognized in statement of comprehensive income |
| | | | | | | | | 2023
GBPm | | 2024
GBPm | | 2025
GBPm | Gains and losses arising during the year: | | | | | | | Experience losses on scheme liabilities | | (11) | | (23) | | (19) | Experience gains/(losses) on scheme assets | | 35 | | (273) | | 3 | Actuarial (losses)/gains on the present value of scheme liabilities due to changes in: | | | | | | | – discount rates | | (145) | | 374 | | (5) | – inflation | | 15 | | (36) | | 43 | – other actuarial assumptions | | 50 | | (17) | | (1) | | | (56) | | 25 | | 21 |
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| Summary of fair value of scheme assets |
| | | | | | | | | | | | | FAIR VALUE OF SCHEME ASSETS | | 2024 | | 2025 | | | UK
GBPm | | US
GBPm | | Total
GBPm | | UK
GBPm | | US
GBPm | | Total
GBPm | Equities¹ | | 419 | | 2 | | 421 | | 311 | | 1 | | 312 | Liability matching assets² | | 1,716 | | 784 | | 2,500 | | 1,929 | | 620 | | 2,549 | Property funds and ground leases³ | | 172 | | - | | 172 | | 100 | | - | | 100 | Direct lending and multi-asset credit funds | | 333 | | - | | 333 | | 300 | | - | | 300 | Cash and cash equivalents⁴ | | 96 | | 14 | | 110 | | 101 | | 9 | | 110 | Other | | 8 | | - | | 8 | | 7 | | - | | 7 | Total | | 2,744 | | 800 | | 3,544 | | 2,748 | | 630 | | 3,378 |
| (1) | Assets are held in unquoted funds which invest in equities with quoted prices. |
| (2) | Within the UK scheme are asset backed securities totalling £519m (2024: £481m), other credit assets of £507m (2024: £487m) and government bonds totalling £2,101m (2024: £1,881m), forward foreign currency contracts of £4m (2024: -£2m), interest rate swaps of £2m (2024: nil) offset by short-term sale and repurchase agreements totalling £1,205m (2024: £1,131m) whereby the UK scheme funds the purchase of government bonds using existing bonds as security. In the US, the assets primarily relate to government bonds, corporate bonds and interest rate swaps. Of the gross assets, £2,219m (2024: £2,049m) are assets with quoted prices in active markets. |
| (3) | Assets without quoted prices in active markets. |
| (4) | Includes £59m (2024: £44m) of assets with quoted prices in an active market. The remainder are held in funds which do not have quoted prices. |
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| Sensitivity analysis of actuarial assumptions |
| | | | | GBPm | Increase/decrease of 0.5% in discount rate | | 174 | Increase/decrease of 0.25% in the expected inflation rate | | 55 | Increase/decrease of one year in assumed life expectancy | | 77 |
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