GMBunion slams new Pensions Bill

The trade union GMB has criticised the Pensions Bill introduced by the Government last week, saying it does nothing to address the pensions crisis in the hospitality industry.

Last year the Government singled out the catering industry as the worst offender in failing to set up stakeholder pension schemes for its employees.

The GMB is concerned that even if companies do set up stakeholder pensions for their employees, they are not required to pay contributions into them. Currently, 90% of stakeholder schemes are worthless.

The union says the Government has failed to address the pension crisis facing the hundreds of thousands of hospitality industry workers who have no pension at all. It now wants Government to force employers to pay a contribution into a pension scheme for their staff.

GMB general secretary Kevin Curran said: "Many employees are offered schemes with little or no employer contribution at all. The Government has only gone halfway to addressing the problem with pensions, and workers will still find themselves facing pensioner poverty."

The new bill brings in an insurance fund to protect workers' pensions when companies go into liquidation. It also introduces an incentive for workers to take their state pension at the age of 70 rather than 65. People who put off taking their pension by five years will receive an additional £52 a year for life or a lump sum of up to £30,000.