The government's plans for promoting company pension schemes could have the opposite effect, a new survey has found.

The poll for the Association for Consulting Actuaries found that just over half of small firms questioned thought measures contained in the Pensions Bill would lead to a fall in the number of companies offering occupational schemes to workers.

In contrast, less than one in 10 believed they would lead to an increase.

Despite claims by ministers that the legislation will save business £130 million a year, nearly 90 per cent of participants in the survey believed it would either make no difference to or increase the cost of offering a pension scheme.

The research also confirmed that less than 30 per cent of small firms are offering final salary schemes to employees.

Of those that are, only a third kept theirs open to new members.

Contributions

Meanwhile, three quarters of businesses reported being advised to increase their contributions due to deficits.

Despite the negative response to parts of the Pensions Bill, 80 per cent of employers expressed their support for the pensions protection fund, which will insure schemes against company bankruptcies.

"Overall, the picture we see is of a divided nation in pensions, with those fortunate enough to be covered by defined benefit schemes - an increasing number of public sector workers and those private sector firms able and willing to bear the costs and liabilities - enjoying greater certainty over their pension future," said ACA chairman Gordon Pollock.

"Set against this are a growing number of employees of all ages taking on a greater investment risk, supported by generally low levels of contributions."