Network Rail pension deficit doubles in 12 months

Network Rail’s pension deficit has almost doubled over the past 12 months, according to its annual results.

The owner of Britain’s rail system saw a 25% fall in the value of the pension scheme, which is now valued at £2.2bn, while the deficit increased from £370m to £664m in 2007-08. Pension costs for the year were £135m, up from £107m over the same period.

The numbers were reported alongside full-year figures that showed the company’s pre-tax profits had remained steady at £1.5bn.

Iain Coucher, the firm’s chief executive, said he was pleased with the results.

“Our strong focus on innovation and investment to improve our operations and reduce operating costs is driving our performance,” he said.

“Network Rail has had a good year overall and there is always room for improvement. I am acutely aware that customers expect and deserve an ever improving rail service.”

Meanwhile, BP announced it would close its £11bn final salary pension scheme to new entrants from April next year in an attempt to cut growing costs.

Comments are closed.