An independent review of pensions is about to be submitted to government ministers, according to the Financial Times, which will add to staff costs faced by smaller companies.

Until now, only medium-sized and large companies have been obliged to offer pension schemes from 2012 onward. But - if the review is accepted by pensions minister Steve Webb - smaller companies will not be excluded.

The very smallest employers should be exempt from the automatic enrolment pension scheme that is due to come into effect in 2012.