Firms told to end 'inertia' on pensions

Workers could be enrolled automatically in company pension schemes or forced to consider alternatives.

Pensions Secretary Alan Johnson will today admit that Britain is heading for a pensions crisis because of widespread failure to save for old age. He blames a "head in the sand culture".

In a speech at the Labour conference today, Mr Johnson is expected to say: "I want to see more companies offering clear information, or automatically enrolling workers into pension schemes, so individuals do not lose out on what is effectively part of their pay because of inertia or confusion."

An estimated 4.6 million workers eligible for company pension schemes do not join. Firms will be told to enrol staff unless they "opt out", or give advice on alternatives.