The Federation of Small Businesses (FSB) has insisted that so-called micro firms should be excluded from government plans to make automatic enrolment into pension schemes a mandatory requirement.
Under the new legislation, companies will be obliged to offer pension provisions for each member of staff from 2012, as well as making their own contributions to eligible workers' savings.
"The FSB is severely disappointed the government has not listened to the needs of the UK's micro firms and has not made them exempt from automatic enrolment," said FSB policy chairman Mike Cherry.
The business body also claimed that a significant proportion of small to medium-sized enterprises are still unaware of the impending changes to pension requirements and urged the government to do more to inform entrepreneurs of the new rules.
Mr Cherry's comments came after pensions minister Steve Webb explained that the Conservative-Liberal Democrat coalition is looking to "transform the savings culture" in the UK.
Posted by Cameron Thomson