The TUC has called on the government to take a "radical" approach to pensions policy.

Workers should be made to match employers' contributions to a pension scheme, the organisation argues, which should total 10 per cent of an employee's salary.

The move came as a National Pensioner's Convention rally was held in Westminster.

Forum Response: Help The Aged

Mervyn Kohler, head of public affairs, told ePolitix.com: "The response to the NPC's rally and the support shown by the TUC demonstrates the new consensus that is growing around the future of pensions policy in the UK.

"Help the Aged supports calls for a decent state pension and is also pushing for compulsory contributions towards a second tier pension, not just from workers but from employers as well."

Forum Response: Business Services Association

Norman Rose, director-general for the BSA, told ePolitix.com: "The TUC call for a mandatory 10 per cent employer's contribution is unreasonable and impractical. If government wishes to encourage employers to contribute to employees' pension funds - whether through a company or personal pension - companies need to be given a tax break to lessen the impact.

"This would be in the best interests of government since it would reduce the burden on the state when employees reach retirement age.

"Equally, while we agree that it is important for employees to make provision for their retirement, compulsion is not the answer.

"Staff must remain free to choose whether they wish to join a pension scheme. Government's role is to make it so desirable and beneficial that they choose to do so."

Forum Response: Age Concern England

A spokesman for Age Concern told ePolitix.com: "People should not be compelled to save into occupational or private pensions unless there is clear evidence that schemes are appropriate and affordable for everyone. It would be unacceptable to compel the poorest people to save knowing that under the present system they may be little better off from doing so.

"We need to look more at encouragement and incentives to save rather than increased compulsion.

"Employers should be encouraged to have good pension schemes for their staff, and preferably with employer contributions. They should also ensure that guaranteed pensions security is built into any scheme they provide."

A spokesman from the Department for Work and Pensions said: "The government is committed to tackling pensioner poverty; helping those in greatest need.

"This government introduced the Minimum Income Guarantee and is committed to raising this in line with earnings throughout this Parliament, ensuring that pensioners can share in rising prosperity.

"From April, around 1.8 million of the poorest pensioner households will be over £1,000 a year better off in real terms as a result of the government's tax and benefit reforms.

"From 2003 the Pension Credit will ensure that it pays to have saved even quite modest amounts, with those entitled standing to gain an average of just over £400 a year.

"Current benefits for pensioners are:

• Minimum Income Guarantee - currently £98.15 per week for a single pensioner and £149.50 for couples.

• Basic state retirement pension currently £75.50 per week for a single pensioner and £120.70 for a couple. From April 2003 this will rise by £100 for a single pensioner and £160 for couples.

• Winter Fuel Payments (available to people aged 60 and over) Currently one annual non means tested, tax free payment of £200.

• Free TV licences for people over 75 (£109 per year, non means tested and tax free).

• Home energy efficiency scheme and home repair assistance may also be available to people over 60 depending on their circumstances."