Over half of businesses 'not aware of pension reforms'

Over half of UK businesses are unaware of plans for pension reforms, a survey has suggested.

In a poll of UK companies conducted by the British Chambers of Commerce, 56% of respondents said they were unaware of the government's plans to extend automatic enrolment to insurance-based workplace Personal Pensions.

Pensions reform minister Mike O'Brien said that automatic enrolment, which will come into practice in 2012, is "key to combating the inertia that prevents people from saving".

However, the BCC survey also found that 16% of respondents were unaware of when the changes are due to occur, and that only 6% had received information about the proposals.

A spokesman from the Department for Work and Pensions told More Than Business news that the government was considering the most effective way to provide information on pension reforms.

However, he said that it was too early to do this while the details of the Pensions Bill 2007 were still being considered by Parliament.

"The Pensions Regulator will be responsible for providing employers with specific information about how employers can discharge their new duties," he added.

Trades Union Congress General Secretary Brendan Barber said that it was not surprising that business had not yet caught up with the scheme.

"The scheme has not yet gained full parliamentary approval and still needs to have many of the practical details worked out," he said. "But I am confident that the team introducing Personal Accounts will do so in a way that gives employees the benefits of both low cost pensions and an employer contribution in a way that causes the least possible difficulties for employer payroll systems."