Question to the HM Treasury:

To ask Her Majesty's Government what plans they have to assist pension funds in matching their liabilities, in the light of the current COVID-19 pandemic-related issues in asset markets, by issuing (1) longevity or mortality gilts; (2) gilts linked to the consumer prices index; and (3) gilts specifically linked to limited consumer price inflation measures. [T]

The Debt Management Office (DMO) continues to issue long-dated conventional gilts and index-linked gilts (linked to the Retail Prices Index), which are instruments often used by pension funds to match longer term liabilities. Decisions on the exact composition of debt issuance are informed by an assessment of investor demand for debt instruments by maturity and type as reported by stakeholders, and as manifested in the shape of the nominal and real yield curves; and by the government’s appetite for risk. The former is noted at quarterly consultation meetings with market participants, held by the DMO.

At present, the UK Government does not have any plans to introduce any new debt financing instruments in response to Covid-19. The government remains open to the introduction of new debt instruments, but would need to be satisfied that any new instrument would meet value-for-money criteria, enjoy strong and sustained demand in the long-term and be consistent with wider fiscal objectives.