Question to the HM Treasury:

To ask His Majesty's Government what is their estimate of the tax relief that will be claimed on future payments made by companies to replace liability-driven investment asset losses in pension schemes, taking into account the Office for National Statistics' increased estimate for losses of £545 billion.

Defined benefit (DB) schemes in aggregate are now better funded, compared to a year ago. This is because of an increase in long-term Gilt yields, which affect the assumptions about the returns scheme trustees can expect on investments over time (though experience will vary among individual DB schemes). This improvement in funding levels takes into account any change in the reported value of schemes’ assets. As a result, no material increase in tax relief on employer contributions paid by the sponsors of such schemes is expected.