Work and pensions secretary Alan Johnson has announced moves to encourage more people to take up the offer of occupational pension schemes.

He told the Labour conference yesterday that the Pensions Bill would allow ministers to require companies to enrol their staff into the pension schemes.

While staff would be able to opt back out, they would have to take active steps to do so. Research has suggested this can boost the take up from less than half of eligible employees to more than 90 per cent.

Meanwhile, the head of the Institute of Actuaries has warned ministers not to compel people to save for their retirement.

Michael Pomery said generous incentives should be used instead.