Sweeping changes need to be made to the framework used for regulating pensions to ease the burden on businesses, according to the Confederation of British Industry (CBI).

In its eight-point plan the CBI have called on the government to automatically allow firms 15 rather than 10 years to repay deficits and demanded greater clarity over how much money a company owes its pension scheme.

"We need much clearer signs of support from the government, who hit these pensions again in the last Budget, and from the Pensions Regulator. Longer recovery periods will help firms keep their commitment to pensions without forcing them to divert critical cashflow," said John Cridland, CBI Deputy Director-General.