Barry Dixon, PIPS secretary and advisor to the GPMU on PIPS, said 43% of its 650 schemes were receiving contributions. This compares favourably with figures from the Association of British Insurers (ABI), which state that 82% of the 350,000 employers stakeholder schemes in place are empty boxes with no pensions yet active.

We are better than the national picture because of the involvement of trade bodies. But its a disappointing picture and reflects the problems with stakeholder pensions, said Dixon.

Theres no real incentive for employers to promote a scheme. The general picture is gloomy so its puzzling to see government not addressing it.

The ABI said just 13% of employers were making contributions on behalf of their employees to stakeholder schemes. Sales of stakeholder policies from April to June were down 10% year on year.

Since October 2001 firms with more than five employees have had a legal duty to offer staff the chance to join a stakeholder pension scheme or a suitable alternative.

Story by John Davies