All businesses in the UK will have to offer their staff a pension from 2012, according to a government announcement.

The new rules, which will mean up to 8 million people saving into a pension for the first time, will apply to every firm, regardless of how many workers it employs.

The amount people have to be earning before they are automatically enrolled has also been increased from £5,035
However, companies will be able to wait for three months before staff are enrolled to reduce costs for firms that employ large numbers of temporary workers.

The amount people have to be earning before they are automatically enrolled has also been increased from £5,035 under the previous government's proposals to £7,475 - in line with the level at which income tax will then be paid.

Other measures to help companies manage the changes include simplifying the process for firms to show that their pension schemes meet the minimum standards required and further measures to reduce red tape.

The previous government set out plans for all workers to be automatically enrolled into a company pension scheme from October 2012, although they will retain the right to opt out.

"The government has rightly chosen to simplify the rules for all employers, rather than carve some out and leave others to cope with a high regulatory burden," said David Rosser of the Confederation of British Industry.

"It is also right that auto-enrolment will kick in three months after someone has started a job. This will avoid people on short-term assignments, who want to maximise their income, being auto-enrolled. It will also avoid the cost to employers of auto-enrolling staff who want to opt-out."