How Mini-Budget Caused ‘Full-Scale Liquidation Event’ for Pension Funds in the UK?

When Kwasi Kwarteng revealed the UK’s mini-budget back in October 2022, there was a massive dip in the value of pensions throughout the UK, which led to near enough a full-scale liquidation event. In fact, BT pensions alone had their values plummet a staggering £11billion after the mini-budget was announced.


Every year, the company BT publishes a report on its pension scheme. This is one of the largest schemes in the country, as it has almost 270,000 members on it. The publishing of this report, given the size of the scheme, provides valuable insight into just how much of an effect the mini-budget had and how it has impacted funds. Following a large rise in interest rates, pension schemes have found themselves under a severe amount of strain.



The bank of England had to intervene five days after the mini-budget was announced. To do this, they promised to buy up to £65billion of government debt in order to further steady the situation. If they didn’t do this, many pensions throughout the UK would have been left with negative assets.


Read BT Pension Scheme Report Here 

Location: United Kingdom

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