Deficit widens for pension schemes

Fears of higher inflation saw the pension gap at the heart of Britain's listed companies widen by £13bn last month.

The collective deficit of FTSE 350 pension schemes hit £55bn in October, compared with £42bn the month before, according to figures from advisory firm Mercer. The shortfall grew due to a rise in the long-term price inflation outlook, which increased liabilities by 3 per cent to £575bn.