Warning over pensions deal

The CBI raised concerns that lower paid employees would "baulk" at costs of the National Employment Savings Trust (Nest) which will be introduced in 2012.

The business group said it supported the idea of encouraging a wider take-up of pensions among millions of workers in private firms, but warned of potential problems over the move to automatically enrol staff.

The deputy director general of the CBI, John Cridland, said: "Nest is a key part of extending the offer of a good pension to everyone in the private sector.

"The scheme is meant to be low-cost and easy to understand, so that it spurs people to start saving, but the risk is that many staff will think they are getting a raw deal, and will quit the Nest scheme."