Tata Steel will pay £520m into its UK pension scheme to break from its deficit

Courtney Goldsmith
Follow Courtney
Tata Prepares To Sell British Steel Operation
Talks between Tata and Thyssenkrupp have stalled (Source: Getty)

Tata Steel offered to make a one-off payment of £520m into its UK pension scheme, according to reports.

In a bid to break from its large UK pension deficit, the steelmaker has put the offer to the trustees of the British Steel Pension Scheme, which has 130,000 members.

India's Tata Steel is in negotiations with Thyssenkrupp over the merger of their European steel units, but Tata's UK operations are causing a headache.

Read more: Is Tata considering walking away from its Thyssenkrupp plan?

The German firm will only go ahead with the merger if the scheme can be left behind.

The proposed payment will help Tata Steel detach itself from the pension scheme with the approval of the regulator.

Tata Steel declined to comment on the reports.

Read more: Tata Consultancy Services powers its growth in the UK

Related articles