UK defined benefit scheme deficits increased £20bn last month, to hit £256.6bn the end of April, according to the Pension Protection Fund’s 7800 index.

The index of 6,316 occupational, mostly private sector funded DB schemes showed liabilities increased to £1,387bn, with the aggregate funding ratio slipping from 82.6% to 81.5% over the period. The impact was lessened slightly by a 0.8% rise in asset values to of £1,130.4bn.

Over the last 12 months, assets have risen 10.6%, according to the index, but liabilities increased 12.1%. Over 80% in the index, 5,142 schemes, are in deficit, valued according to Section 179 of the Pensions Act 2004, up from 5,073 last year. The aggregate among those in deficit at the end of April 2013 is estimated to have increased to £283.9bn, while surpluses amount to £25.3bn.

The increase in liabilities was driven by lower nominal and index-linked gilt yields, according to the PPF. Over the month 15-year gilt yields fell by 11 basis points, down 44 basis points over the year, while 15 year index-linked gilt yields fell by 7 basis points. Over the same periods the FTSE All-Share Index, rose 0.3% and 13.6%.

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