The pensions bill could increase the costs faced by many small firms if it becomes law, one expert has warned.
According to Phil Orford, chief executive of the Forum of Private Business, plans to ban the offering of incentives to encourage people to opt out of pension scheme will hit SMEs hard.
He said: "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."
Mr Orford also pointed to the body's latest survey of it members which found that 81 per cent of them feel that the bill will "significantly" add to the amount of administration they have to do.
Meanwhile, David Frost, director general of the British Chambers of Commerce, has criticised the proposals included in the new equalities bill.
Mr Frost believes that these will increase the amount of red tape small firms have to deal with.
