The aggregate surplus of DB pension schemes climbed to £230.5bn at the end of June, according to the latest Pension Protection Fund (PPF) 7800 Index.

That’s up by £9.4bn from a surplus of £221.1bn at the end of May.

The funding ratio rose to 126.2% in June, up from 125.6% in May.

Total scheme assets climbed 2.5% to £1,110bn during the month while total liabilities rose 2% to £863bn.

The deficit of schemes in deficit at the end of June was £28.7bn, £2.2bn lower than the £30.9bn recorded at the end of May.

Shalin Bhagwan, PPF chief actuary said: "After a month of fluctuating fortunes in government bond markets, which ultimately ended with overall lower yields, the PPF-eligible DB universe experienced an increase in their estimated liability values.

“However, this rise in liability values was outpaced by the growth in DB schemes' estimated asset values, driven by positive returns over the month for all asset classes, and particularly overseas equities, on the back of favourable economic data and better-than-expected corporate earnings reports.”

Sarah Elwine, actuarial director at consultancy, said: “Rising asset values through June supported an improved funding position for many defined benefit pension schemes. Across the universe of schemes, the picture remains one of robust health with the majority of schemes now registering a surplus increasing their options and decreasing their cost to the sponsoring employer.

"As we look ahead to the second half of 2025, the only known appears to be more unknowns as uncertainty appear likely to persist amid ongoing tariff negotiations, volatile geopolitics and a challenging Autumn Budget for the UK Chancellor to deliver.

“This creates a difficult environment for trustees as they look to navigate through the turbulence. Investment strategies must be closely managed to achieve longer-term objectives however opportunities continue to emerge in the insurance market, with new options on offer and reforms making run-on a more attractive route for many schemes."