Commenting on DB pensions schemes facing a worsening funding gap after Britain's vote to leave the EU, Francois Barker, head of pensions at Eversheds, says:
“The combined deficit of all UK defined benefit pension plans is a sobering number and could potentially create some significant tensions within Government. On the one hand, the DWP might just be tempted to consider whether corporate UK should be cut some slack – freeing companies from some of their past pensions promises so they can better deliver growth going forward. On the other, the Treasury is likely to need defined benefit plans exactly where they are at present – as forced buyers of all the gilts that the Treasury will need to issue in the coming years. Either way, policymakers will need to perform a delicate balancing act over the weeks and months ahead."