There was an improved focus on cost control during 2008. This resulted in a reduction in ongoing overhead costs in our UK businesses of 8%. We made these changes without compromising necessary investments for the future, for example assigning some £88m to [IT] development during 2008.
Our employees remain our most important resource, and they have risen to the challenges presented by a more difficult economic environment and the need to continue delivering operational efficiency. Overall headcount fell 290 to 9,777 during the year. This reflected the outsourcing of IT application development, as well as a number of changes as a result of projects to eliminate overlap and duplication which were offset by the addition of new employees as a result of acquisitions during the year.
We reviewed our UK defined benefit pension schemes during the year, considering all options to ensure that the plans remain fundable in the long term and of benefit to both members and to Legal & General. Increases to pensionable salary have been capped, balancing the increasing plan risk against future funding of the plans.
We continued to benefit from our strong relationship with Unite, the trade union, with whom we continued to consult on a wide range of employment issues. The mutual trust and communication between the two organisations brings benefit to both the staff and the [Group].