The funding ratio increased from 146.5% to 148.8% while total assets were £1,398bn and total liabilities were £939.7bn.

The PPF reported that there were 505 schemes in deficit and 4,545 schemes in surplus.

The deficit of the schemes in deficit at the end of April was £3.8bn, up from £3.4bn at the end of March 2024.

Shalin Bhagwan, PPF chief actuary, said: “In the last month, we’ve seen the estimated aggregate surplus of eligible defined benefit pension schemes continue to rise – with a £2.8bn increase over the course of April, while the funding ratio increased by 2.3%. These changes resulted from a 4% fall in liability values – largely driven by a sharp rise in government bond yields – which offset a 2.5% fall in assets held across the eligible universe.

“However, despite the overall positive movements, there was a slight increase in the deficit of schemes in deficit, which grew to £3.8bn. This reflects the higher proportion of assets invested in classes which saw the largest reductions in value over the month, in particular bonds.”

Charlotte Fletcher, business development actuary at Standard Life, part of Phoenix Group, said: “Funding levels remain encouraging after the PPF’s latest update. With the market now anticipating interest rate cuts in the second half of the summer following indications from the Bank of England last week, we could see some volatility in scheme funding positions.

“This will be a new consideration for trustees who are exploring locking in favourable positions through bulk annuity transactions.”

She said that schemes looking to secure their members’ benefits with a buy-in, would need thorough preparation before approaching the insurance market, “as 2024 is expected to be another record-breaking year.”

The PPF is a public corporation, set up by the Pensions Act 2004, and has been protecting members of eligible defined benefit pension schemes across the UK since 2005. It is run by an independent board and is accountable to Parliament through the Secretary of State for the Department for Work and Pensions.

The PPF is funded by a levy charged to eligible schemes, the return on its investments, assets from pension schemes transferred into the PPF and recoveries from insolvent employers.