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Press Release

FSB says yes to pensions debate, no to employer compulsion

30 November 2005

The FSB has welcomed the current debate on UK pensions, but attacked proposals in today’s Pensions Commission report to compel employers to contribute to employees’ pension funds.

The FSB opposes any form of compulsory employer contributions, which most small businesses would not be able to afford and which could lead to wage reductions and job losses.

Northern Ireland’s biggest business organisation urged the government to make efforts to restore confidence in the private pensions industry and the financial services sector as a whole.

Wilfred Mitchell, FSB Policy Chairman, said:

“The proposed three percent compulsory employer contributions will be a tax too far for small businesses. The bottom line is that most small employers simply cannot afford it and would be forced to make damaging cuts in other areas.

“The FSB recognises the need to tackle the pension’s crisis and we welcome the current debate. But shackling small firms, the drivers of economic growth, with extra expense is not the answer.

“It is also disappointing to note that there has been very little debate about the self-employed. Furthermore, at a time when we are all being asked to make sacrifices, it was wholly wrong of the government to afford preferential treatment on the retirement age to the public sector.”



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Federation of Small Businesses

Federation of Small Businesses

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