The BBC is expected to pay £175 million into pensions next year. This comes as the national broadcaster attempts to reduce spending, aiming to save £600 million.
Outgoing Director General Tim Davie announced last week that the BBC would reduce its budget by 10% before 2030, having already promised to cut £150 million in spending by 2028. The broadcaster is projected to pay £50 million in employer pension contributions to the defined benefit (DB) scheme during the 2026/27 financial year. It will also need to pay £125 million to finish a £1.14 billion bailout of the scheme. The BBC pension scheme is one of the largest in Britain and has four plans that closed to new entrants over 10 years ago. Some members can retire at 60 with uncapped final-salary pensions, while others have pensions based on average earnings from 65.
Most employers moved away from similar schemes years ago to fully defined contribution arrangements; the BBC has been urged to do the same.
This comes as the BBC licence fee increases by £5.50 to £180 a year and about 300,000 Brits have scrapped their licences over the last year.
The Adam Smith Institute, a financial think tank, has criticised the BBC’s pension scheme, saying funding should instead be directed to programming.
Maxwell Marlow, director of public affairs, told GB News: “The BBC is still playing fast and loose with licence fee payer money.
“Instead of funding high‑quality media output, which is currently lacking across the corporation, they are diverting huge funds into unrealistic, unsustainable and unmatched defined benefit pension schemes.”
A BBC spokesman said: “The defined benefit scheme closed to new joiners in 2010, so the number of active members continues to fall each year. At the same time, the funding position has continued to strengthen.”
He added: “At the BBC, we remain committed to offering a pension arrangement that is financially sustainable, fairer and more consistent for all our employees.”