BT shares jump after £2bn payment halves pension deficit

Analysts welcomed the agreement, saying BT had "pulled an early Easter pensions bunny out of the hat". However, they also warned that the comparison may not look so favourable further down the line.

Deutsche Bank said lower gilt yields from quantative easing "may yet result in a more onerous view". Espirito Santo added that "onerous conditions" meant BT could be forced to increase its payments depending on the outcome of two reviews i 2014 and 2017.

Seperately, the health of BT's pension scheme hinges on a ruling by the Competition Appeal Tribunal, expected next month. BT hopes to put up the prices it charges rivals to use its nationwide network in order to help drag its pension fund out of the red. The telecoms group claims that it should be able to ask its rivals to help fund extra pension contributions because its pensioners created the network on which BSkyB, Cable & Wireless Worldwide and TalkTalk are all piggy-backing. Ofcom ruled against the levy in 2010.