Most UK firms think that the government’s plans for pensions personal accounts will significantly increase paperwork, according to new research.

The Forum of Private Business (FPB), found that 81% of respondents believed that the government’s proposed ‘personal accounts’, which are set to be introduced in 2012, would ‘significantly’ add to their administrative burden.

Phil Orford, the FPB’s chief executive, said: "Our members are already struggling under the burden of red tape, which is increasing at an alarming rate.

“The additional paperwork and costs that would be imposed on them could be extremely harmful. The FPB believes that this should be a decision made by business owners, based on their ability to afford to offer pension schemes."