THE Forum of Private Business is concerned that UK businesses may face up to £3.86 billion in fines by leaving preparation for stakeholder pensions to the last minute.

Non-exempted businesses employing five or more people have until October 8 to offer their employees a stakeholder pension and a payroll deduction facility.

Stakeholder pensions were introduced by the Government to encourage more people to save for their own retirement.

Firms which fail to meet the October 8 deadline face a maximum £50,000 fine.

FPB has negotiated with Legal & General to provide a solution. Executive chairman Stan Mendham said: "The stakeholder scheme we have negotiated for our members brings all the benefits usually reserved for big business to small and medium-sized enterprises."