Better pensions used to keep staff

Research among more than 250 companies by the manufacturers’ organisation EEF found they were “highly committed” to pensions and were in favour of mandatory contributions from employers and workers.

Director of policy Steve Radley said: “Manufacturers remain committed to providing high-quality pensions.

“Despite the challenging economic and regulatory environment, significant numbers of companies still offer final salary schemes and almost all companies have either maintained or increased contribution rates to defined contribution schemes.

“But, companies are telling us that the risks and regulation associated with pensions are rising and they have no capacity to take on extra responsibilities.”

Mr Radley said that starting with the Budget the Government must take progressive steps to make employers’ pensions responsibilities simpler and clearer.