Does gov't gilt policy need to change?

Gilts, the common name for public debt or bonds issued by the UK government, are the basis for annuities as they offer a guaranteed rate of return over a certain period of time. However, as more pension schemes have moved into gilts over recent years as part of scheme funding plans - to reduce deficits and match liabilities - the price of gilts has gone up. In May 2005, the Debt Management Office (DMO) - an executive agency of HM Treasury - started issuing 50-year gilts but a report for the Department for Work on Pensions (DWP) on annuity pricing, published this March, says while this mov...