Britain's pensions crisis will not be overcome unless employers make compulsory contributions to occupational pensions, and workers join the company scheme as a condition of employment, said the TUC in a new report 'Prospects for pensions' out today. The union body has called for a national pensions debate and proposes that employers pay twice as much as workers into their pension fund.

John Monks TUC General Secretary, said: "Individuals can never save enough to fund a secure retirement. We need a partnership between employers, the state and workers, backed up by legislation to ensure that millions do not spend their hard-earned retirement in poverty."

The report reveals that more than half of Britain's workforce are not in an occupational pension scheme. And in the past 10 years those covered by final salary schemes has dropped by nearly two million to 3.8 million. These statistics show that Britain's pensions crisis is not new, but has been growing for a decade.

Other key points from the report, are:

• All workers should have access to a quality pension whether provided through a final salary, defined contribution or stakeholder scheme.
• The UK's pensions system has always been based on the principle that responsibility for retirement provision should be shared by the state, employers and individuals. The present problems are a result of a retreat from pension provision by the state and employers.
• Final salary schemes are fast disappearing from the pensions landscape. In large measure this is because employers' contribution holidays have now come to an end.
• The government has made some progress in addressing the weaknesses in the pensions system. But more remains to be done as can be seen from the three reviews (Pickering, Sandler and the Inland Revenue) that are currently in progress.
• In the sprit of shared responsibility, consideration must be given to introducing compulsory employer contributions to occupational pensions. As a quid pro quo, employers should be enabled to make pension scheme membership a condition of employment for employees.
• Workers on modest incomes may find it hard to maintain their current commitments and save for a pension. Consideration should be given to fiscal incentives, including a pension tax credit, to make saving more affordable for lower paid employees.