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In July 2007, the total deficit of schemes in deficit stood at £34bn, showing that one year on, deficits have almost doubled as a result of the tremors in stock markets.

According to the PPF 7800 index, the number of schemes in deficit in July 2008 stood at 5,857, up from 5,499 schemes in June 2008 representing 76 per cent of total defined benefit schemes in the sample.

The aggregate funding position (total assets minus total liabilities) of almost 7,800 defined benefit funds is also estimated to have worsened over the month to a deficit of £24.1bn at end-July 2008, from a surplus of £8.3bn at end-June 2008.

The number of schemes in surplus was lower in July 2008, compared to the previous month, at 1,886 (24 per cent of the schemes). In July, 2007 there were 3,172 schemes in surplus.