The pension deficit at Barnardo’s, the UK’s largest children’s charity, increased from nearly £96m in 2014 to £109m this year, according to its latest accounts.

During the year to 30 March 2015, the charity had to contribute £6m to the past cost of pensions, and this meant it had to draw £1.5m from its reserves to make up for a shortfall in spending on charitable activity.

The pension shortfall also pushes the charity's reserves into the red. The charity's unrestricted reserves show a deficit of £14.3m.

In the last five years the pension deficit has grown steadily, from £73.4m in 2011 to £87.8m in 2013 and £109m in 2015.  It closed its defined benefit scheme to further accrual in 2013/14.

The charity’s net assets are £127.2m without taking into account the pension deficit.

The charity has said that it has agreed a plan with the pension fund trustees to eliminate the deficit over “a number of years”, and these contributions have been planned into future cashflow projections “without needing an ongoing contribution from reserves”.

The charity increased its income over the year, from £285.7m to £295.9m. 

The charity saw a 12 per cent drop in fundraising income to £27.8m, but made £9.6m from the sale of former sites.

Chief executive Javed Khan (pictured) earned between £150,000 and £160,000.

During the year the charity reached 200,000 children at more than 900 services.  It employed over 8,500 staff and 16,000 volunteers.

Barnardo’s turns 150 next year and will launch a new corporate strategy in the spring as its last three-year strategy draws to a close.  It is planning “significant investment in our fundraising and income generation capability” as part of that strategy.