Pension Protection Fund
Statutory UK lifeboat fund for insolvent employers' defined-benefit pension schemes; publishes the PPF 7800 index.
At 30 September 2026, the Pension Protection Fund's index put 4,838 eligible defined-benefit schemes at 135.0% funded, with a £280.7bn aggregate surplus after three consecutive monthly gains.
Last refreshed: 22 October 2026 · Appears in 1 active topic
If defined-benefit pensions hold a £264bn surplus, which British ledger is actually healthy?
Timeline for Pension Protection Fund
Reported schemes 135.0% funded with a £280.7bn surplus
Is Britain Actually Broke?: Pension surplus hits £280.7bn, PPF saysReported defined-benefit pension schemes reaching 133.0% funded
Is Britain Actually Broke?: PPF index rises to 133.0% funded in JulyReported a 131.1%-funded, £264.0bn aggregate DB surplus
Is Britain Actually Broke?: Pension schemes sit £264bn in surplusBackground
The Pension Protection Fund is the statutory UK lifeboat for members of defined-benefit pension schemes whose sponsoring employer becomes insolvent. Its role is to pay compensation when that employer can no longer support the scheme. The fund also publishes the monthly PPF 7800 index, which tracks aggregate funding across schemes eligible for its protection.
The fund therefore has two linked but distinct roles: it protects members after corporate failure and reports the wider funding position before failure occurs. The index is an aggregate measure, so a large overall surplus does not establish that every scheme is equally funded. Its 2026 movements also show how gilt yields can lower measured liabilities while asset values fall, making the series sensitive to market valuation as well as contributions.
The aggregate surplus keeps rising
At 30 September 2026, the PPF 7800 index put 4,838 eligible schemes at 135.0% funded and their aggregate surplus at £280.7bn. That followed £273.6bn and 133.4% at 31 August. The PPF attributed September's rise to liabilities falling more sharply than assets.
From the fund's vantage, higher gilt yields reduced measured liabilities even as assets fell. The index had already risen from 131.1% and £264.0bn at 30 June to 133.0% and £271.3bn at 31 July, so the September reading extended a trend rather than marking one isolated move.
Are UK defined-benefit pensions in surplus or deficit?
What does the Pension Protection Fund do?
How many pension schemes does the PPF 7800 index cover?
Is the pension surplus evidence Britain isn't broke?
What is the PPF 7800 index?
Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Updated 22 October 2026. Editorial standards.