EVERY business in Hampshire and the UK will have to offer their staff a pension from 2012, the Government has announced.

The new rules, which will lead to up to eight million people saving into a pension for the first time, will apply to every firm, regardless of how many workers it employs.

Business leaders in Hampshire warned the Government had to talk to employers to make sure they did not fall foul of the new laws.

Companies will be able to wait for three months before staff are enrolled into a pension scheme, to reduce costs for firms that employ large numbers of temporary workers.

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The amount people will have to be earning before they are automatically enrolled has been increased from £5,035 under the previous government's proposals to £7,475 – in line with the level at which income tax is paid.

Jimmy Chestnutt, Chief Executive of Hampshire Chamber of Commerce, said: “The government must communicate the need for this clearly and ensure that employers understand what they are required to do. If businesses do not understand the changes, there could be widespread confusion. We are pleased that the government has accepted the case for exempting seasonal staff, so employers will not have to spend time and money enrolling temporary employees into pensions that won’t be continuing.”

Other measures to help companies manage the changes include simplifying the process for firms to show that their pension schemes meet the minimum standards required and measures to reduce the red tape.

Companies that do not offer their own pension scheme will be able to enroll their workers into the National Employment Savings Trust (Nest), a low-cost scheme set up by the Government.

Pensions Minister Steve Webb said: “Our reforms will ensure that millions of people will start to save for their retirement, many for the first time. I welcome the sensible and balanced proposals from the independent review team, which will help ensure automatic enrolment works.”

But critics of the scheme have warned that it could hit the competitiveness of small businesses, while there are also fears that it will lead to a “levelling down” of company pension schemes in line with the minimum contribution levels required.