Early auto-enrolment ‘a priority’ for Conservatives

Speaking at an Association of British Insurers conference the Tory work and pensions spokeswoman told delegates allowing companies to voluntarily opt-in prior to the 2012 deadline was "worth serious consideration".

Under current proposals employers are only mandated to enrol workers into a qualifying workplace scheme once the deadline has passed.

She said: "Under the current system, savers are being punished rather than rewarded. As the economy recovers from recession, we need to foster a new culture of saving in the UK. I believe that auto-enrolment is a necessary part of this and if allowing companies to opt-in early will help smooth the process of transition, it is worth considering."

May also revealed a string of Conservative pension policy measures ahead of next year's election and hinted the party could abandon the personal accounts scheme altogether.

She confirmed a Tory government would review personal accounts amid "serious concerns" over the prospect of levelling down - admitting revelations that contributions would only reach 1% by 2015 "could undermine the credibility of the system".

She also said industry calls for greater flexibility in the pensions system had been heard - although policy commitments only stretched as far as "having a look at" models of early access such as those currently used in the US and New Zealand.

She admitted work on the proposal was at an "early stage" and a timetable for implementation has yet to be completed.