Director Basic Tim Davie final week introduced plans to cut back the broadcaster’s £6billion annual price range by an additional 10 per cent over the subsequent three years, constructing on an present dedication to chop £150million by 2028.
Nonetheless, the company’s outlined profit pension preparations are projected to require as much as £50million in employer contributions in the course of the 2026–27 monetary yr.
An extra £125million may be wanted to finish an extended‑working bailout of the scheme.
The monetary strain comes because the annual licence price rises by £5.50 to £180, whereas 300,000 households gave up their licences over the previous yr.
Broadcaster faces £175million pension invoice
|
GETTY
“As an alternative of funding excessive‑high quality media output, which is at the moment missing throughout the company, they’re diverting large funds into unrealistic, unsustainable and unmatched outlined profit pension schemes.”
Some members can retire at 60 with uncapped last‑wage pensions, whereas others obtain pensions primarily based on common earnings from age 65.
Tim Davie introduced plans to cut back the £6billion price range by 10 per cent over the subsequent three years
|
GETTY
Funds are on account of rise by as much as 4.2 per cent this yr.
Employer contribution charges have beforehand reached as excessive as 42 per cent during times of heightened funding strain.
They’re scheduled to face at 15.9 per cent from April 2026 — nonetheless greater than 5 occasions the statutory minimal employer contribution of three per cent sometimes seen in personal‑sector outlined‑contribution schemes.
Since 2010, when the scheme was judged unable to fulfill its lengthy‑time period liabilities, the deficit‑restoration programme has value £1.14billion.
| GETTY
A spokesman stated: “The outlined profit scheme closed to new joiners in 2010, so the variety of lively members continues to fall every year. On the similar time, the funding place has continued to strengthen.”
New workers now enter an outlined‑contribution scheme, with employer contributions of as much as 10 per cent.
The broadcaster and its employees collectively contribute round £110million to pension provision every year because it balances legacy obligations with wider efforts to cut back prices.
