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Employee benefit obligations (Tables)
 12 Months Ended
Dec. 31, 2024
Disclosure Of Pension Costs [abstract]  
Pension Costs The Group’s pension costs are analysed as follows:
202420232022
£m£m£m
Defined contribution plans202 198 191 
Defined benefit plans charge to operating profit13 15 14 
Pension costs (note 5)
215 213 205 
Net interest expense on pension plans (note 6)
4 4 2 
219 217 207 
Fair Value of Assets and Assessed Present Value of Liabilities in Pension Plans
At 31 December, the fair value of the assets in the pension plans and the assessed present value of the liabilities in the pension plans are shown in the following table:
20242023
£m%£m%
Equities25 10 %24 9 %
Bonds175 70 %170 66 %
Cash8 3 %18 7 %
Other43 17 %47 18 %
Total fair value of assets251 100 %259 100 %
Present value of liabilities(365)(381)
Deficit in the plans(114)(122)
Irrecoverable surplus— — 
Net liability1
(114)(122)
Plans in surplus2
18 14 
Plans in deficit(132)(136)
Notes
1    The related deferred tax asset is discussed in note 14.
2 The net asset related to plans in surplus of £18 million for 31 December 2024 (2023: £14 million) is recorded in the consolidated balance sheet within other receivables and prepayments.
Surplus/(Deficit) in Plans by Region
All plan assets have quoted prices in active markets with the exception of other assets.
20242023
Surplus/(deficit) in plans by region£m£m
UK1 1 
North America(23)(30)
Western Continental Europe(56)(60)
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe(36)(33)
Deficit in the plans(114)(122)
Funded and Unfunded Pension Plans By Region
The following table shows the split of the deficit at 31 December between funded and unfunded pension plans.
2024
Surplus/
(deficit)
£m
2024
Present
value of
liabilities
£m
2023
Surplus/
(deficit)
£m
2023
Present
value of
liabilities
£m
Funded plans by region
UK1 (9)1 (9)
North America11 (174)7 (183)
Western Continental Europe(29)(65)(34)(70)
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe
(3)(23)(5)(28)
Deficit/liabilities in the funded plans
(20)(271)(31)(290)
Unfunded plans by region
North America(34)(34)(37)(37)
Western Continental Europe(27)(27)(26)(26)
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe(33)(33)(28)(28)
Deficit/liabilities in the unfunded plans
(94)(94)(91)(91)
Deficit/liabilities in the plans
(114)(365)(122)(381)
Weighted Average Assumptions Used For Actuarial Valuations The main weighted average assumptions used for the actuarial valuations at 31 December are shown in the following table:
202420232022
% pa% pa% pa
UK
Discount rate1
5.2 4.7 5.1 
Rate of increase in pensions in payment2.6 2.5 4.4 
Inflation3.2 3.1 3.0 
North America
Discount rate1
5.4 4.9 5.2 
Rate of increase in salaries2
n/an/an/a
Western Continental Europe
Discount rate1
3.3 3.4 4.1 
Rate of increase in salaries2.5 2.5 2.5 
Rate of increase in pensions in payment2.0 2.0 2.0 
Inflation2.0 2.0 2.0 
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe
Discount rate1
6.4 6.5 6.4 
Rate of increase in salaries6.2 6.2 5.7 
Inflation2.9 3.4 3.4 
Notes
1Discount rates are based on high-quality corporate bond yields. In countries where there is no deep market in corporate bonds, the discount rate assumption has been set with regard to the yield on long-term government bonds.
2The salary assumptions are no longer applicable to the US as all plans were frozen. Active participants will not accrue additional benefits for future services under these plans.
Life Expectancies For Defined Benefit Pension Plans
At 31 December 2024, the life expectancies underlying the value of the accrued liabilities for the main defined benefit pension plans operated by the Group were as follows:
Years life expectancy after
age 65		All
plans		North
America		UKWestern
Continental
Europe
Other1
Current pensioners
(at age 65) – male		21.822.021.421.2n/a
Current pensioners
(at age 65) – female		23.623.523.424.2n/a
Future pensioners
(current age 45) – male		23.423.423.123.4n/a
Future pensioners
(current age 45) – female		25.124.825.226.1n/a
Note
1Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe.
Weighted Average Duration of Defined Benefit Pension Obligations and Distribution of Timing of Benefit Payments
The following table provides information on the weighted average duration of the defined benefit pension obligations and the distribution of the timing of benefit payments for the next ten years. The duration corresponds to the weighted average length of the underlying cash flows.
All
plans		North
America		UKWestern
Continental
Europe
Other1
Weighted average duration of the defined benefit obligation (years)7.56.85.410.35.5
Expected benefit payments over the next ten years (£m)
within 12 months
31 19 1 6 5 
in 2026
30 19 1 5 5 
in 2027
30 19 1 6 4 
in 2028
28 16 1 7 4 
in 2029
30 18 1 6 5 
in the next five years
144 83 2 31 28 
Note
1Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe.
Sensitivity Analysis of Significant Actuarial Assumptions
(Decrease)/increase
in benefit obligation
20242023
Sensitivity analysis of significant actuarial assumptions£m£m
Discount rate
Increase by 25 basis points:
UK— — 
North America(3)(4)
Western Continental Europe(2)(2)
Other1
(1)(1)
Decrease by 25 basis points:
UK— — 
North America3 4 
Western Continental Europe2 2 
Other1
1 1 
Rate of increase in salaries
Increase by 25 basis points:
Western Continental Europe1 1 
Other1
1 — 
Decrease by 25 basis points:
Western Continental Europe(1)(1)
Other1
(1)(1)
Rate of increase in pensions in payment
Increase by 25 basis points:
UK— — 
Western Continental Europe1 1 
Decrease by 25 basis points:
UK— — 
Western Continental Europe(1)(1)
Life expectancy
Increase in longevity by one additional year:
UK1 1 
North America3 3 
Western Continental Europe3 3 
Note
1Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe.
Pension Expense Charged to Operating Profit, Amounts Charged to Finance Costs and Amounts Recognised in Consolidated Statement of Comprehensive Income (OCI)
The following tables show the breakdown of the pension expense between amounts charged to operating profit and amounts charged to finance costs:
202420232022
£m£m£m
Service cost1
12 12 11 
Administrative expenses1 3 3 
Charge to operating profit13 15 14 
Net interest expense on pension plans4 4 2 
Charge to profit before taxation for defined benefit plans17 19 16 
Note
1Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments.
The following table shows the breakdown of amounts recognised in other comprehensive income (OCI):
202420232022
£m£m£m
Return on plan assets (excluding interest income)(4)7 (128)
Changes in demographic assumptions underlying the present value of the plan liabilities— (1)— 
Changes in financial assumptions underlying the present value of the plan liabilities11 (14)144 
Experience loss arising on the plan liabilities
(4)(1)— 
Change in irrecoverable surplus— — — 
Actuarial gain/(loss) recognised in OCI
3 (9)16 
Movement in Pension Plan Assets and Liabilities
The following table shows an analysis of the movement in the pension plan liabilities for each accounting period:
202420232022
£m£m£m
Plan liabilities at beginning of year381 553 689 
Service cost1
12 12 11 
Interest cost16 21 16 
Actuarial loss/(gain):
Effect of changes in demographic assumptions— 1 — 
Effect of changes in financial assumptions(11)14 (144)
Effect of experience adjustments4 1 — 
Benefits paid(33)(38)(52)
(Gain)/loss due to exchange rate movements
(2)(17)40 
Settlement payments2
(1)(163)(9)
Other3
(1)(3)2 
Plan liabilities at end of year365 381 553 
Notes
1    Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments.
2    During the year ended 31 December 2023, the Group completed the winding-up of two defined benefit pension plans: The Ogilvy & Mather Group Pension and Life Assurance Plan and the JWT Pension and Life Assurance Scheme, constituting settlements under IAS 19. The settlements led to the full elimination of associated plan assets and plan liabilities of £145 million, the fair value of plan assets equaled the underlying liabilities upon settlement such that there is no impact on 2023 net assets or the income statement.
3    Other includes acquisitions, disposals, plan participants’ contributions and reclassifications. The reclassifications represent certain of the Group’s defined benefit plans which are included in this note for the first time in the periods presented.
The following table shows an analysis of the movement in the pension plan assets for each accounting period:
202420232022
£m£m£m
Fair value of plan assets at beginning of year259 431 552 
Interest income on plan assets12 16 13 
Loss on plan assets (excluding interest income)
(4)6 (127)
Employer contributions20 20 24 
Benefits paid(33)(38)(52)
Gain/(loss) due to exchange rate movements
1 (12)31 
Settlement payments1
(1)(163)(9)
Administrative expenses(1)(3)(3)
Other2
(2)2 2 
Fair value of plan assets at end of year251 259 431 
Actual return/(loss) on plan assets
8 22 (114)
Notes
1During the year ended 31 December 2023, the Group completed the winding-up of two defined benefit pension plans: The Ogilvy & Mather Group Pension and Life Assurance Plan and the JWT Pension and Life Assurance Scheme, constituting settlements under IAS 19. The settlements led to the full elimination of associated plan assets and plan liabilities of £145 million, the fair value of plan assets equaled the underlying liabilities upon settlement such that there is no impact on 2023 net assets or the income statement.
2    Other includes acquisitions, disposals, plan participants’ contributions and reclassifications. The reclassifications represent certain of the Group’s defined benefit plans which are included in this note for the first time in the periods presented.