The huge pensions deficit which followed the collapse of BHS could now rise by another seven per cent.
22,000 employees’ pensions were affected by the selling and subsequent collapse of the high street giant and the deficit totaled £571 million, but this figure could now be £717 million.
Last week’s interest rate cut of 0.25 per cent from the Bank of England means extra millions could be added to pension deficit schemes. Consultancy firm Hymans Robertson reported a possible rise of seven per cent on existing figures.
It is thought the continuation of low interest rates mixed with a fresh round of quantitative easing will have significant effects on annuity rates and employees’ pensions country wide.
For the already significant deficit that former BHS owner Sir Phillip Green has been called upon to “write a cheque” from his own pocket and which he has claimed he will “sort”, this could add another £50 million to the deficit.
Last week Frank Field MP called on the Serious Fraud Office to investigate Green and his handling of BHS during its demise.