FPB calls for more carrot and less stick to ease pensions crisis

A UK business pressure group is urging the Government to avoid íthe big stick approachí to encouraging wider take-up of occupational pensions.

Nick Goulding, the Forum of Private Business Chief Executive, called on the Government to think carefully before introducing an element of compulsion into employerís contributions to pension schemes. If small businesses are to be encouraged to improve pensions provision, they must be able to do so easily and cheaply,í he said. It must be made more attractive for businesses to contribute to the pension of their employees. It is currently expensive, difficult to administer and confusing for many employers to provide pensions.í

If we are to ease the pensions crisis, a collaborative approach is needed from both Government and employers. The Employer Task Force on Pensions has recommended that more is done to make voluntary participation in pension schemes more attractive for small businesses, in particular, in a report published today. The FPB would welcome such an incentive-led approach.