To the considerable relief of the occupational pensions industry, the UK government has agreed to allow members of final salary pension schemes to take advantage of stakeholder pensions.

Alan Pickering, chairman of the industry body the National Association of Pension Funds (NAPF), said: 'This is the single most important decision taken by the UK government in its pensions review. It is a vital simplification of the system which will significantly increase the prospects of success for stakeholder pensions while avoiding collateral damage to occupational schemes.'