The UK defined benefit (DB) pension deficit was £270bn at the end of July, the same level as was recorded at the end of June, according to PwC’s Skyval Index.

This follows a £30bn jump in June, driven primarily by a £30bn increase in liabilities to £2,050bn.

Liabilities at the end of July remained at £2,050bn, whilst assets remained at £1,780bn for the third month running.

PWC chief actuary, Steven Dicker, commented: “Amid a backdrop of some lockdown measures being eased and economic activity starting to pick up, but concerns around Covid-19 remaining, the markets remained reasonably steady.

“As a result, both liabilities and assets of the UK DB corporate pension universe are unchanged from June.

“The long-term impact of the pandemic on the economy remains uncertain, so trustees and sponsors need to stay focused on risk management.

“While the overall position may have remained reasonably stable, individual schemes have fared very differently depending on how well their risk management approach and governance framework has responded to the crisis.”

PwC’s Skyval Index, based on the Skyval platform used by pension funds, provides an aggregate health check of the UK’s c.5,450 corporate DB pension funds.

The current Skyval Index figures are based on the 'gilts plus' method, widely used by scheme actuaries.

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