Surging equities markets last month were insufficient to offset the effects of falling gilt yields, sending the aggregate shortfall of UK pension schemes up towards £200bn.

According to the Pension Protection Fund’s 7800 Index, a monthly tracker of the total assets and liabilities of schemes where benefits are insured, the total deficit of schemes with shortfalls stood at £194.6bn at the end of August, up from £179bn a month earlier. The PPF said that 85 per cent of all UK schemes were in deficit.