Pensions secretary Peter Hain

The government is set to introduce legislation placing a duty on all employers to contribute to their employees' pensions.

Announced in the Queen's speech, the Pensions Bill is designed to make it easier for people to save through automatic enrolment into a qualifying workplace scheme or personal accounts.

"A bill will place a duty on every employer to contribute to good quality workplace pensions for their employees," the speech pledged.

Ministers say that the introduction of a minimum employer contribution would improve incentives to save and increase pension participation.

Low cost personal accounts would give those without access to a good quality pensions scheme the opportunity to save.

In an addition an independent delivery authority will determine how the scheme is set up and run.