EEF urges government to help with personal accounts costs

Employers organisation the EEF lobbied the government on the issue ahead of the third reading of the Pension Bill later this afternoon.

Deputy director of employment policy David Yeandle said: "The provision of this initial financial assistance would not only recognise the additional costs and administrative burdens that many smaller employers will face for the first time in contributing to their employees’ pension arrangements but it would also help to make the small business community more supportive of these new pension arrangements."

He added: "The latter point is very important because many of those who the government is trying to encourage to save for their retirement work for smaller employers and the attitude of these employers will therefore be very important for the successful implementation of the government’s pensions reform programme."

The EEF also backs the Association of Consulting Actuaries calls to establish risk-sharing schemes and thinks the government consultation on this is a positive move.

Yeandle added: "This consultation should examine in detail the advantages and disadvantages of introducing conditional indexation.

"Examining this issue in detail with all stakeholders before deciding whether or not to legislate is the right way for the government to address this complex and, potentially, controversial issue rather than to introduce legislation on this now as part of the Pensions Bill."