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UK News
The drop to 1.7% paves the way for the Bank of England to cut interest rates again next month.
Pensions Secretary Liz Kendall says trials of the idea have produced "dramatic results".
Filling the £22bn financial "black hole" would only be enough “to keep public services" still, she told a meeting.
The firm aims to secure the new funding as a walkout by more than 30,000 workers enters its second month.
The government is facing criticism by businesses over a potential tax rise that would fall on employers.