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Pension and post-retirement benefits (Tables)
 12 Months Ended
Dec. 31, 2022
Disclosure of defined benefit plans [abstract]  
Income statement charge
The following tables include amounts recognised in the income statement and an analysis of benefit obligations and scheme assets for all Barclays Bank Group defined benefit schemes. The net position is reconciled to the assets and liabilities recognised on the balance sheet. The tables include funded and unfunded post-retirement benefits. The income statement charge with respect to defined contribution schemes is disclosed as part of footnotes to Note 29 “Staff costs”.
Income statement (credit)/charge
20222021
£m£m
Current service cost2858
Net finance (income)/cost(122)(26)
Past service cost20—
Other movements—2
Total(74)34
Balance sheet reconciliation
Balance sheet reconciliation
20222021
Barclays Bank Group TotalOf which relates to UKRFBarclays Bank Group TotalOf which relates to UKRF
£m£m£m£m
Benefit obligation at beginning of the year(31,834)(30,859)(33,131)(32,108)
Current service cost(209)(197)(240)(225)
Interest costs on scheme liabilities(725)(707)(422)(405)
Past service cost(20)(20)——
Remeasurement gain/(loss) - financial10,99510,734849820
Remeasurement gain/(loss) - demographic2682705350
Remeasurement (loss)/gain - experience(521)(510)(249)(259)
Employee contributions(4)—(4)—
Benefits paid1,3391,2991,3091,268
Exchange and other movements(90)—1—
Benefit obligation at end of the year(20,801)(19,990)(31,834)(30,859)
Fair value of scheme assets at beginning of the year35,46734,67834,71333,915
Interest income on scheme assets847829448434
Employer contribution1,8071,785971955
Remeasurement - return on plan assets (less)/greater than discount rate(11,510)(11,313)653642
Employee contributions4—4—
Benefits paid(1,339)(1,299)(1,309)(1,268)
Exchange and other movements84—(13)—
Fair value of scheme assets at the end of the year25,36024,68035,46734,678
Net surplus4,5594,6903,6333,819
Retirement benefit assets4,7434,6903,8793,819
Retirement benefit liabilities(184)—(246)—
Net retirement benefit assets4,5594,6903,6333,819
Actuarial valuation of the schemes' obligation based on assumptions
Actuarial valuation of the scheme's obligations is dependent upon a series of assumptions. Below is a summary of the main financial and demographic assumptions adopted for the UKRF.
Key UKRF financial assumptions20222021
% p.a.% p.a.
Discount rate4.80 1.84 
Inflation rate (RPI)3.21 3.56 
The table below shows how the assumed life expectancy at 60, for members of the UKRF, has varied over the past three years.
Assumed life expectancy202220212020
Life expectancy at 60 for current pensioners (years)
– Males26.827.327.2
– Females29.529.629.4
Life expectancy at 60 for future pensioners currently aged 40 (years)
– Males28.329.129.0
– Females31.031.431.2
The UKRF entered into a longevity reinsurance contract in 2022 covering £7bn of the pensioner liabilities. This is in addition to a £5bn transaction executed in 2020. In total, over three-quarters of the longevity risk for current pensioners has been reinsured, and the transactions will provide income to the UKRF in the event that pensions are paid out for longer than expected. The contracts form part of the UKRF’s investment portfolio. At 31 December 2022, the contracts are valued at £(123)m (2021: nil). The negative value placed on the longevity reinsurance contracts at 31 December 2022 reflects the estimated impact of changes in the reinsurance market, demographic assumptions and risk premia since the 2020 transaction was entered into by the UKRF. The 2022 transaction is valued at nil as it is assessed to have been transacted recently at fair value.
Sensitivity analysis on actuarial assumptions
The sensitivity analysis has been calculated by valuing the UKRF liabilities using the amended assumptions shown in the table below and keeping the remaining assumptions the same as disclosed in the table above, except in the case of the inflation sensitivity where other assumptions that depend on assumed inflation have also been amended correspondingly. The difference between the recalculated liability figure and that stated in the balance sheet reconciliation table above is the figure shown. The selection of these movements to illustrate the sensitivity of the defined benefit obligation to key assumptions should not be interpreted as the Barclays Bank Group expressing any specific view of the probability of such movements happening.
Change in key assumptions
20222021
(Decrease)/Increase in UKRF defined benefit obligation(Decrease)/Increase in UKRF defined benefit obligation
£bn£bn
Discount rate
0.50% p.a. increase(1.1)(2.3)
0.25% p.a. increase(0.6)(1.2)
0.25% p.a. decrease0.61.3
0.50% p.a. decrease1.22.6
Assumed RPI
0.50% p.a. increase0.81.6
0.25% p.a. increase0.40.8
0.25% p.a. decrease(0.4)(0.8)
0.50% p.a. decrease(0.8)(1.6)
Life expectancy at 60
One year increase0.61.2
One year decrease(0.5)(1.2)
Analysis of scheme assets
The value of the assets of the schemes and their percentage in relation to total scheme assets were as follows:
Analysis of scheme assets
Barclays Bank Group TotalOf which relates to UKRF
Quoted
Unquoteda
Value% of total
fair value of
scheme
assets		Quoted
Unquoteda
Value% of total
fair value of
scheme
assets
£m£m£m%£m£m£m%
As at 31 December 2022
Equities113—1130.5 ———— 
Private equities —2,7342,73410.8 —2,7342,73411.1 
Bonds - fixed government1,353—1,3535.3 1,098—1,0984.4 
Bonds - index-linked government9,847—9,84738.9 9,829—9,82939.9 
Bonds - corporate and other5,8841,5517,43529.3 5,6901,5517,24129.3 
Property131,3101,3235.2 —1,3101,3105.3 
Infrastructure7937901,5836.2 7937901,5836.4 
Hedge funds111,3621,3735.4 —1,3621,3625.5 
Derivatives(20)(1,837)(1,857)(7.3)(20)(1,837)(1,857)(7.5)
Longevity reinsurance contracts—(123)(123)(0.5)—(123)(123)(0.5)
Cash and liquid assetsc
(1,776)3,2861,5106.0 (1,789)3,2861,4976.1 
Mixed investment funds11—11————— 
Other751580.2 —66— 
Fair value of scheme assets16,2369,12425,360100.0 15,6019,07924,680100.0 
As at 31 December 2021
Equities294—2940.8167—1670.5
Private equities —3,1133,1138.8—3,1133,1139.0
Bonds - fixed government2,3841612,5457.22,0801612,2416.5
Bonds - index-linked government15,375—15,37543.515,352—15,35244.4
Bonds - corporate and other7,4511,4988,94925.27,2141,4988,71225.1
Property141,4901,5044.2—1,4901,4904.3
Infrastructure—1,8151,8155.1—1,8151,8155.2
Hedge funds—1,3651,3653.8—1,3651,3653.9
Derivatives11011—11011—
Longevity reinsurance contracts———— ————
Cash and liquid assetsc
(1,865)2,2754101.2(1,878)2,2753971.1
Mixed Investment funds9—9————— 
Other2057770.2—1515—
Fair value of scheme assetsb
23,68311,78435,467100.022,93611,74234,678100.0
Notes
aValuation of unquoted assets is provided by the underlying managers or qualified independent valuers. Valuations of complex instruments are based on UKRF custodian valuations. The valuation for some of the unquoted assets, in particular Private equities, is based on valuations as at 30 September 2022 adjusted by cash flows, these being the latest available valuations as at the point of publication. All valuations are determined in accordance with relevant industry guidance.
bThe asset allocation for 2021 has been re-presented to reflect re-interpretation of the asset classifications as well as a reclassification of £1.2bn between unquoted/quoted bonds and quoted/unquoted bonds, in a manner that management believes better represents the underlying nature of the assets.
cCash and liquid assets for the UKRF consists of £521m (2021:£488m) Cash, £80m (2021:£93m) Receivables/payables, £3,286m (2021: £2,275m) Pooled cash funds and £(2,390)m (2021: £(2,459)m) Repurchase agreements.
Defined benefit contributions paid
Defined benefit contributions paid with respect to the UKRF were as follows:
Contributions paid
£m
20221,785
2021955
2020748