v3.25.4
Retirement benefit and other post-retirement obligations (Tables)
 12 Months Ended
Dec. 31, 2025
Texts Block [Abstract]  
Summary of Defined Plan Analysis
At 31 December 2025, the UK Group plan had approximately 25,700 members, analysed in the following table:
 
  All figures in %
   
  Active
     
  Deferred
     
  Pensioners
     
   Total
  
Defined benefit
  
 
–
 
  
 
12
 
  
 
35
 
  
 
47
  
Defined contribution
  
 
11
 
  
 
42
 
  
 
–
 
  
 
53
 
 
 
 
 
 
Total
  
 
11
 
  
 
54
 
  
 
35
 
  
 
100
 
Summary of Principal Assumptions Used for UK Group Plan and US PRMB
Assumptions
The principal assumptions used for the UK Group plan and the US PRMB are shown below. Weighted average assumptions have been shown for the other plans, which primarily relate to US pension plans.
 
                  
2025
                  
2024
                   
2023
  
  All figures in %
  
UK
Group
plan
     
Other
plans
     
PRMB
    
UK
Group
plan
     
Other
plans
     
PRMB
     
UK
Group
plan
     
Other
plans
     
PRMB
  
Inflation
    
2.8
 
  
 
2.0
 
  
 
–
 
 
   3.1        2.0        –        3.0        2.0        –  
Rate used to discount plan liabilities
    
5.5
 
  
 
4.9
 
  
 
4.9
 
 
   5.5        5.1        5.4        4.6        4.9        5.0  
Expected rate of increase in salaries
    
3.3
 
  
 
2.5
 
  
 
–
 
 
   3.6        2.5        –        3.5        2.5        –  
Expected rate of increase for pensions in payment and deferred pensions
  
 
1.70 to

5.10
 

 
   
 
 –
 
   
 
 –
 
    
 1.85 to
5.15
  
 
      –        –       
 1.75 to
5.10
  
 
      –        –  
Initial rate of increase in healthcare rate
    
–
 
  
 
–
 
  
 
6.8
 
 
   –        –        7.0        –        –        6.5  
Ultimate rate of increase in healthcare rate
    
–
 
  
 
–
 
  
 
5.0
 
 
   –        –        5.0        –        –        5.0  
Summary of Remaining Average Life Expectancy in Years of Pensioner Retiring at Age 65
Using the above tables, the remaining average life expectancy in years of a pensioner retiring at age 65 on the balance sheet date for the UK Group plan and US plans is as follows:
 
  All figures in years
   
  2025
     
  2024
     
UK
 
  2023
     
  2025
     
  2024
     
US
 
  2023
  
Male
  
 
21.5
 
  
 
21.3
 
  
 
21.8
 
  
 
20.8
 
  
 
20.7
 
  
   20.7   
Female
  
 
24.5
 
  
 
24.5
 
  
 
24.1
 
  
 
22.8
 
  
 
22.7
 
  
   22.6  
The remaining average life expectancy in years of a pensioner retiring at age 65, 20 years after the balance sheet date, for the UK and US Group plans is as follows:
 
  All figures in years
   
  2025
     
  2024
     
UK
 
  2023
     
  2025
     
  2024
     
US
 
  2023
  
Male
     
23.1
 
  
 
22.9
 
  
 
23.4
 
  
 
22.3
        22.2        22.2   
Female
     
26.2
 
  
 
26.2
 
  
 
25.8
 
  
 
24.2
        24.1        24.1  
Summary of Amounts Recognised in Income Statement
Financial statement information
The amounts recognised in the income statement are as follows:
 
                                        
2025
  
  All figures in £ millions
   
UK Group
plan
    
Defined
benefit
other
    
Sub-total
    
Defined
contribution
     
PRMB
     
Total
  
Current service cost
     
17
 
  
 
1
 
  
 
18
 
  
 
41
 
  
 
–
 
  
 
59
  
 
Past service cost
     
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
  
Settlements
     
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
  
Administration expenses
     
9
 
  
 
–
 
  
 
9
 
  
 
–
 
  
 
–
 
  
 
9
  
 
 
 
 
 
 
 
Total operating expense
     
26
 
  
 
1
 
  
 
27
 
  
 
41
 
  
 
–
 
  
 
68
  
Interest on plan assets
     
(158
)
  
 
(3
)
  
 
(161
)
  
 
–
 
  
 
–
 
  
 
(161
)
Interest on plan liabilities
     
132
 
  
 
3
 
  
 
135
 
  
 
–
 
  
 
1
 
  
 
136
 
 
 
 
 
 
 
 
Net finance (income)/expense
     
(26
)
  
 
–
 
  
 
(26
)
  
 
–
 
  
 
1
 
  
 
(25
)
 
 
 
 
 
 
 
Net income statement charge
     
–
 
  
 
1
 
  
 
1
 
  
 
41
 
  
 
1
 
  
 
43
  
 
                                     
2024
  
  All figures in £ millions
   
UK Group
plan
    
Defined
benefit
other
    
 Sub-total
    
Defined
 contribution
     
 PRMB
     
 Total
  
Current service cost
      17       2       19       41        –        60  
Past service cost
      13       –       13       –        –        13  
Settlements
      –       –       –       –        –        –  
Administration expenses
      8       –       8       –        –        8  
Total operating expense
      38       2       40       41        –        81  
Interest on plan assets
      (138 )      (5 )      (143 )      –        –        (143 ) 
Interest on plan liabilities
      116       5       121       –        1        122  
             
Net finance (income)/expense
      (22 )      –       (22 )      –        1        (21 ) 
             
Net income statement charge
      16       2       18       41        1        60  

  
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
2023
 
  All figures in £ millions
   
UK Group
plan
    
Defined
benefit
other
    
Sub-total
    
Defined
contribution
     
PRMB
     
Total
  
Current service cost
  
 
16
 
 
 
2
 
 
 
18
 
 
 
45
 
  
 
–
 
  
 
63
 
Past service cost
  
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
  
 
–
 
  
 
–
 
Settlements
  
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
  
 
–
 
  
 
–
 
Administration expenses
  
 
8
 
 
 
–
 
 
 
8
 
 
 
–
 
  
 
–
 
  
 
8
 
Total operating expense
  
 
24
 
 
 
2
 
 
 
26
 
 
 
45
 
  
 
–
 
  
 
71
 
Interest on plan assets
  
 
(148
) 
 
 
(5
) 
 
 
(153
) 
 
 
–
 
  
 
–
 
  
 
(153
) 
Interest on plan liabilities
  
 
121
 
 
 
6
 
 
 
127
 
 
 
–
 
  
 
–
 
  
 
127
 
Net finance (income)/expense
  
 
(27
) 
 
 
1
 
 
 
(26
) 
 
 
–
 
  
 
–
 
  
 
(26
) 
Net income statement charge
  
 
(3
) 
 
 
3
 
 
 
–
 
 
 
45
 
  
 
–
 
  
 
45
 
Summary of Amounts Recognised in Balance Sheet
The amounts recognised in the balance sheet are as follows:
 
                       
2025
                      
2024
  
  All figures in £ millions
   
UK
Group
plan
    
Other
funded
plans
    
Other
unfunded
plans
    
Total
    
UK
Group
plan
    
Other
funded
plans
    
Other
unfunded
plans
    
Total
  
Fair value of plan assets
   
 
2,994
 
  
 
5
 
  
 
–
 
  
 
2,999
 
     2,927       84       –       3,011  
Present value of defined benefit obligation
   
 
(2,480
) 
  
 
(1
) 
  
 
(12
) 
  
 
(2,493
) 
     (2,443 )      (77 )      (14 )      (2,534 ) 
                 
Net pension asset/ (liability)
   
 
514
 
  
 
4
 
  
 
(12
) 
  
 
506
 
     484       7       (14 )      477  
Other post-retirement medical benefit obligation
         
 
(17
) 
           (19 ) 
Other pension accruals
                           
 
(7
) 
                             (8 ) 
Net retirement benefit asset
         
 
482
 
           450  
                 
Analysed as:
                 
                 
Retirement benefit assets
         
 
518
 
           491  
Retirement benefit obligations
                           
 
(36
) 
                             (41 ) 
Summary of Gains (Losses) Recognised in Other Comprehensive Income
The following gains/(losses) have been recognised in other comprehensive income:
 
  All figures in £ millions
  
   2025
 
 
   2024
 
  
   2023
 
Amounts recognised for defined benefit plans
  
 
11
 
  
 
4
 
  
 
(86
) 
Amounts recognised for post-retirement medical benefit plans
  
 
(1
) 
  
 
1
 
  
 
1
 
Total recognised in year
  
 
10
 
  
 
5
 
  
 
(85
) 
Summary of Fair Value of Plan Assets
The fair value of plan assets comprises the following:

 
  
  
 
 
  
 
 
  
2025
 
  
 
 
  
 
 
  
2024
 
  All figures in %
  
 UK Group
plan
 
  
Other
funded plans
 
  
   Total
 
  
  UK Group
plan
 
  
Other
funded plans
 
  
    Total
 
Insurance
   
 
30
 
   
 
–
 
   
 
30
 
      31        –        31   
Equities
  
 
19
 
  
 
–
 
  
 
19
 
  
 
17
 
  
 
1
 
  
 
18
 
Fixed interest securities
  
 
8
 
  
 
–
 
  
 
8
 
  
 
7
 
  
 
2
 
  
 
9
 
Property
  
 
5
 
  
 
–
 
  
 
5
 
  
 
5
 
  
 
–
 
  
 
5
 
Pooled asset investment funds (including LDI)
  
 
21
 
  
 
–
 
  
 
21
 
  
 
22
 
  
 
–
 
  
 
22
 
Infrastructure
  
 
10
 
  
 
–
 
  
 
10
 
  
 
11
 
  
 
–
 
  
 
11
 
Cash and cash equivalents
  
 
4
 
  
 
1
 
  
 
5
 
  
 
2
 
  
 
–
 
  
 
2
 
Other
  
 
2
 
  
 
–
 
  
 
2
 
  
 
2
 
  
 
–
 
  
 
2
 
Summary of Quoted and Non Quoted Market Price
The plan assets do not include any of the Group’s own financial instruments, or any property occupied by the Group. The table below further disaggregates the plan assets into those assets which have a quoted market price in an active market and those that do not:
 
  All figures in %
 
Quoted
market price
 
 
2025
 
No quoted
market price
 
 
Quoted
market price
 
 
2024
 
No quoted
market price
 
Insurance
 
 
–
 
 
 
30
 
 
 
–
 
 
 
31
 
Equities
 
 
19
 
 
 
–
 
 
 
18
 
 
 
–
   
Fixed-interest securities
 
 
8
 
 
 
–
 
 
 
9
 
 
 
–
 
Property
 
 
–
 
 
 
5
 
 
 
–
 
 
 
5
 
Pooled asset investment funds (including LDI)
 
 
21
 
 
 
–
 
 
 
22
 
 
 
–
 
Infrastructure
 
 
–
 
 
 
10
 
 
 
–
 
 
 
11
 
Cash and cash equivalents
 
 
–
 
 
 
5
 
 
 
–
 
 
 
2
 
Other
 
 
–
 
 
 
2
 
 
 
–
 
 
 
2
 
 
 
 
 
 
Total
 
 
48
 
 
 
52
 
 
 
49
 
 
 
51
 
Summary of Liquidity Profile of UK Group Plan Assets
The liquidity profile of the UK Group plan asset
s is as follows:

 
  All figures in %
  
   2025
 
  
     2024
 
Liquid – call <1 month
  
 
53
 
  
 
50
 
Less liquid – call 1–3 months
  
 
2
 
  
 
2
   
Illiquid – call >3 months
  
 
45
 
  
 
48
 
Summary of Changes in Values of Plan Assets and Liabilities
Changes in the values of plan assets and liabilities of the retirement benefit plans are as follows:

 
  All figures in £ millions
  
UK Group
plan
 
  
Other
plans
 
  
2025
 
 
Total
 
  
UK Group
plan
 
  
Other
plans
 
  
2024
 
 
Total
 
Fair value of plan assets
  
  
  
  
  
  
Opening fair value of plan assets
  
 
2,927
 
  
 
84
 
  
 
3,011
 
  
 
3,060
 
  
 
107
 
  
 
3,167
 
Exchange differences
  
 
–
 
  
 
(4
)
 
  
 
(4
)
 
  
 
–
 
  
 
(2
) 
  
 
(2
) 
Interest on plan assets
  
 
158
 
  
 
3
 
  
 
161
 
  
 
138
 
  
 
5
 
  
 
143
 
Return on plan assets excluding interest
  
 
40
 
  
 
–
 
  
 
40
 
  
 
(144
) 
  
 
1
 
  
 
(143
) 
Contributions by employer
  
 
16
 
  
 
3
 
  
 
19
 
  
 
8
 
  
 
1
 
  
 
9
 
Contributions by employees
  
 
7
 
  
 
–
 
  
 
7
 
  
 
7
 
  
 
–
 
  
 
7
 
Benefits paid
  
 
(154
)
 
  
 
(11
)
  
 
(165
)
  
 
(142
) 
  
 
(12
) 
  
 
(154
) 
Settlements
  
 
–
 
  
 
(70
)
  
 
(70
)
  
 
–
 
  
 
(16
) 
  
 
(16
) 
 
 
 
 
 
 
 
Closing fair value of plan assets
  
 
 2,994
 
  
 
   5
 
  
 
 2,999
 
  
 
 2,927
 
  
 
   84
 
  
 
 3,011
 
Present value of defined benefit obligation
  
 
  

     

     
 
  
  
  
Opening defined benefit obligation
  
 
(2,443
)
  
 
(91
)
  
 
(2,534
)
  
 
(2,569
) 
  
 
(114
) 
  
 
(2,683
) 
Exchange differences
  
 
–
 
  
 
4
 
  
 
4
 
  
 
–
 
  
 
–
 
  
 
–
 
Current service cost
  
 
(17
)
  
 
(1
)
  
 
(18
)
  
 
(17
) 
  
 
(2
) 
  
 
(19
) 
Past service cost
  
 
–
 
  
 
–
 
  
 
–
 
  
 
(13
) 
  
 
–
 
  
 
(13
) 
Administration expenses
  
 
(9
)
  
 
–
 
  
 
(9
)
  
 
(8
) 
  
 
–
 
  
 
(8
) 
Interest on plan liabilities
  
 
(132
)
  
 
(3
)
  
 
(135
)
  
 
(116
) 
  
 
(5
) 
  
 
(121
) 
Actuarial losses –
experience
  
 
(50
)
  
 
(2
)
  
 
(52
)
  
 
(53
) 
  
 
–
 
  
 
(53
) 
Actuarial gains –
demographic
  
 
6
 
  
 
–
 
  
 
6
 
  
 
38
 
  
 
–
 
  
 
38
 
Actuarial gains/(losses) –
financial
  
 
18
 
  
 
(1
)
  
 
17
 
  
 
160
 
  
 
2
 
  
 
162
 
Contributions by employees
  
 
(7
)
  
 
–
 
  
 
(7
)
  
 
(7
) 
  
 
–
 
  
 
(7
) 
Benefits paid
  
 
154
 
  
 
11
 
  
 
165
 
  
 
142
 
  
 
12
 
  
 
154
 
Settlements
  
 
–
 
  
 
70
 
  
 
70
 
  
 
–
 
  
 
16
 
  
 
16
 
 
 
 
 
 
 
 
Closing defined benefit obligation
  
 
(2,480
)
  
 
(13
)
  
 
(2,493
)
  
 
(2,443
) 
  
 
(91
) 
  
 
(2,534
) 
Summary of Changes in Value of US PRMB
Changes in the value of the US PRMB are as follows:

 
  All figures in £ millions
  
    2025
 
 
    2024
 
Opening defined benefit obligation
   
 
(19
) 
     (21 ) 
Exchange differences
   
 
2
 
     –  
Interest on plan liabilities
   
 
(1
) 
     (1 ) 
Actuarial gains – experience
   
 
(1
) 
     1  
Actuarial losses – financial
   
 
–
 
     –  
Benefits paid
   
 
2
 
     2  
     
Closing defined benefit obligation
   
 
(17
) 
     (19 ) 
                  
Summary of Effect Percentage of Discount Rate Increase (Decrease) on Defined Benefit Obligation and Total Pension Expense
The effect of a one percentage point increase and decrease in the discount rate on the defined benefit obligation and the total pension expense is as follows:
 
  All figures in £ millions
   
  1% increase
    
2025
 
  1% decrease
  
Effect:
      
(Decrease)/increase in defined benefit obligation – UK Group plan
   
 
(151
)
 
  
 
181
  
(Decrease)/increase in defined benefit obligation – US plan
   
 
(1
)
  
 
1
  
The effect of members living one year more or one year less on the defined benefit obligation is as follows:
 
  All figures in £ millions
   
  One year
increase
     
2025
 
  One year
decrease
  
Effect:
      
Increase/(decrease) in defined benefit obligation – UK Group plan
  
 
40
 
  
 
(39
)
 
Increase/(decrease) in defined benefit obligation – US plan
  
 
–
 
  
 
–
 
The effect of a half percentage point increase and decrease in the inflation rate is as follows:
 
  All figures in £ millions
   
0.5%
  increase
     
2025
 
0.5%
  decrease
  
Effect:
      
Increase/(decrease) in defined benefit obligation – UK Group plan
     
38
 
  
 
(36
)
 
Increase/(decrease) in defined benefit obligation – US plan
     
–
 
  
 
–