Work pensions 'down under Labour'

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More than one million extra people face retirement without a pension from their employer than when Labour came to power, the Conservatives claim.

The number of workers affected rose from under 10.5 million in 1997 to more than 11.5 million by 2006, they say.

The Tories said the figures, based on those supplied by the Office for National Statistics, represented a financial "ticking time bomb".

The government said it was working to encourage more pensions for employees.

'Tough time'

Shadow work and pensions secretary Chris Grayling said Gordon Brown's decision to remove a tax break for pension funds, after he became chancellor in 1997, had contributed to the increase in people not entering private schemes.

He added: "These figures show that Gordon Brown's pension crisis has left Britain with a ticking time bomb.

"The next generation faces a tough time in retirement because he's done so much to destroy this country's pensions culture."

The Conservatives' analysis uses figures from the Office of National Statistics' Annual Survey of Hours and Earnings.

It shows that in 1997 there were 10,442,000 workers with no pension provision from employers. By 2006, that figure had risen to 11,534,000.

Next week the government's pensions bill - which seeks to enrol employees automatically in a workplace pension - returns to the Commons.

But critics argue that the high level of means-testing in the pensions and benefits system means that it may not be worthwhile for many people to save.

Employers may limit pay rises to be able to afford their contributions to the pension scheme, they add.

But Pensions Minister Mike O'Brien said the increase in the number of people not entering work pension schemes was "long term" and that the government was working to simplify the system to increase take-up.