BOSSES at East Lancashire's small firms have been warned that they risk fines of up to £50,000 if they do not provide their employees with low-cost pensions.

Under a Government initiative, stakeholder pension schemes will be introduced from April 6 this year and firms must have them in place by October.

Blackburn-based Diane Eatough of the North West Society of Chartered Accountants said more than a third of companies surveyed had not made any plans to provide staff with access to the pensions.

" It is essential for firms with more than five employees to prepare for stakeholder pensions as soon as possible, " said Mrs Eatough, of Port, Matthew and Marsden.

"Although there has been some publicity, it does not have a high profile and it is only human nature for busy directors to put things on the back burner.

"A lot of people in small businesses still do not know about the pensions and there is a danger of an almighty rush in September when they realise the deadline is looming. "