Notes to the Accounts (continued)

30. Pensions (continued) Movements in the fair value of scheme assets were as follows:

2011 £000

Scheme assets at the start of the year Expected return on scheme assets Actuarial gains

Contributions by employer

Contributions by scheme participants Benefits paid

Scheme assets at the end of the year

Contributions by employer include deficit contributions of £8 million (2010: £2 million). Movements in the present value of scheme obligations were as follows:

2011 £000

Scheme liabilities at the start of the year Current service cost Interest cost

Contributions by scheme participants Past service costs Actuarial (gain)/loss Benefits paid

Scheme liabilities at the end of the year The analysis of scheme assets at the balance sheet date was as follows:

Fair value of assets 2011

£000

Equities Debt

Property Cash

None of the scheme’s assets are invested in any property or other assets currently used by the Group.

To develop the expected long-term rate of return on assets assumption the Group considered the current level of expected returns on risk-free investments (primarily government bonds), the historical level of the risk premium associated with the other asset categories in which the portfolio is invested and the expectations for future returns of each asset class. The expected return for each asset class was weighted based on the benchmark asset allocation at 31 March 2010 to develop the expected long-term rate of return on assets assumption for the portfolio. This resulted in the selection of a 6.2% assumption for the year to 31 March 2012 (2011: 6.4%).

215,782 111,487 28,771 3,596

359,636

2010 £000

201,144 103,816 12,977 6,488

324,425

360,905 8,892

20,624 2,428 197

(8,195) (9,692)

375,159

2010 £000

251,012 6,642

17,088 2,511 406

92,247 (9,001)

360,905

324,425 19,413 5,462

17,600 2,428

(9,692) 359,636

2010 £000

247,161 14,919 57,338 11,497 2,511

(9,001) 324,425

56 / Annual Report and Accounts / Notes to the Accounts