The government has stated that all UK companies - regardless of their size - should offer a company pension scheme or enrol their staff into the new National Employment Savings Trust (Nest).

Nest is due to start next year and the deadline for all firms joining is September 2016. To be eligible, staff will have to earn at least £7,475 a year.

The government says it will mean that between four million and eight million workers will start to save in a pension scheme for the first time.

Not all business owners are pleased with the announcement, and the Federation of Private Businesses has criticised the scheme.

"The proposed changes are still complicated for micro businesses to put in place. The cost and time spent on administrative work will damage micro firms - those with 10 employees or less," said Mike Cherry of the FSB.