ITV has agreed to defer £15m of deficit recovery contributions (DRC) into its pension schemes for a period of three months.

According to its Q1 Trading Statement, the broadcaster agreed the suspension of a total of £150m of payments with its pension trustees and tax authorities to “tightly manage” its cashflow in 2020.

This includes includes the deferral of payments to other stakeholders.

ITV's DRCs totalled £74m in 2019 and were expected to total around £75m in 2020.

A spokesman for the ITV Pension Scheme said: “Given the unprecedented circumstances posed by the Covid-19 pandemic, the trustee has granted ITV permission to defer DRCs due to the scheme for a period of three months.

“The trustee has agreed to the proposal after consulting closely with its specialist legal, actuarial and covenant advisers, so as to allow the company to preserve cash during the period of uncertainty that Covid-19 has created.

“In line with guidance from The Pensions Regulator (TPR), the trustee is satisfied that it has secured appropriate mitigatory measures to ensure that members’ interests are protected, and that the deferred contributions are repaid within the timeframe of the current recovery plan.

“In the meantime, all pensions and other benefits will continue to be paid as normal.”

In March, TPR confirmed easements for employers looking to suspend DRCs as part of its updated guidance on Covid-19.

ITV’s trading statement also revealed that ITV’s defined benefit schemes’ funding positions shifted from a £87m deficit to a £285m surplus during Q1 2020.

It stated that the movement was driven by the increase in the discount rate resulting from the rise in corporate bond yields and the reduction in inflation assumptions.

Commenting on the announcement, ITV chief executive, Carolyn McCall, said: "ITV has taken swift and decisive action to manage and mitigate the impact of Covid-19, by focusing on our people and their safety, and by continuing to reduce costs and tightly manage our cashflow and liquidity.

“Everyone at ITV has responded extremely well to the challenges we are facing. We are now very focused on emerging from this crisis in a strong position, continuing to offer advertisers effective marketing opportunities and making preparations to restart productions safely."

On 17 March, TPR gave ITV a six month deadline to put in place financial support for the Box Clever pension scheme, after the broadcaster lost its legal challenge.

In February 2020, the Supreme Court rejected ITV's latest attempt to challenge the regulator's case that it should support the scheme, likely marking the end of the eight-year legal challenge.

TPR’s Determinations Panel issued financial support directions to ITV and four related entities, which must now show how they will support the scheme comprised around 2,800 members and with a deficit of approximately £115m.

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