Employers welcome delay to pension personal accounts scheme

Britain's employers have succeeded in persuading the government to delay the introduction of personal pension accounts for workers.

Citing the added cost of providing benefits, in addition to the task of administering the changeover to the new system, business groups have long argued for the planned start date of 2012 to be re-thought.

Now, pensions minister Angela Eagle has agreed to hold off the introduction of the scheme, which is aimed at helping lower-paid workers save for their retirement, until 2016 so as to give employers the opportunity to properly prepare for the new system.

In particular, the minister stated that the delay will be a boost to small and medium-sized employers, though workers' groups have argued that the move will deal a fresh blow to many of the country's lowest-paid workers, many of whom continue to struggle to put money away for the future.

On the back of Ms Eagle's decision, the Trades Union Congress warned: "We understand there are practical issues that need to be discussed about its implementation, but the pensions crisis is getting worse with every day that employers retreat from providing decent pensions."

At the same time, the High Court has ruled that employers will still be allowed to force their workers to retire once they reach 65, despite arguments that this represents age discrimination.