Hospitality is worst provider of pensions

The hotel and restaurant industry is the worst provider of the new stakeholder pensions, according to a new business school study.

The report, by David Storey of Warwick Business School, found that only 4% of hotel and restaurant companies that ought to offer stakeholder pensions had schemes in place. He carried out the study for insurance company Prudential.

Companies could be liable for fines of up to £50,000 if they fail to set up stakeholder pension schemes by October.

Martin Couchman, deputy chairman of the British Hospitality Association, was concerned about the results. "If these results are true it is very worrying," he said.

"We've warned our members about this I don't know how many times," he added, "but people aren't very interested."

HCIMA chief executive David Wood blamed a lack of awareness about the legislation. "The industry as a whole doesn't realise they have to do something," he said. "They don't understand their liability."

Patrick Ryan, managing director of RCC Life and Pensions, said: "There are a massive amount of caterers who are in for the most amazing rude awakening come 8 October."

The new legislation says that all employers with five or more relevant staff must offer employees access to stakeholder pensions from 8 October. "If a company already has a pension in place they have nothing to worry about," added Ryan.