By Sarah Toyne BBC News Online personal finance reporter

Thousands of employers are breaking the law by not making stakeholder pensions available to their staff but they are unlikely to be fined.

This is more evidence that shows pensions policy in the UK is in a mess Steve Webb, Liberal Democrat work and pensions spokesman

Since October 2001 it has been a legal requirement for firms with five employees or more to make a stakeholder pension available if they do not have an existing pension scheme - or face fines of up to �50,000.

According to the latest figures, obtained by the Liberal Democrats, more than 14,000 firms had still not complied by the end of September 2002.

But the Occupational Pensions Regulatory Authority (Opra) told BBC News Online that it had not fined anyone for non-compliance, despite between 100,000 and 300,000 firms missing the original deadline.

Empty shells

There has been increasing criticism of stakeholder plans in recent months.

Stakeholder pensions, low-cost pensions with charges capped at 1%, were introduced in April 2001.

Most of the businesses that have failed to comply are either hotel and catering firms, or transport and road haulage companies.

These workers are just the sort of people the government wanted to take out stakeholder plans, as their work is often seasonal or temporary - and can be low paid.

But the government has been accused of doing too little to encourage take-up of the plans.

Even when employers have complied, not many workers have been signed up.

According to a recent report 90% of schemes offered by employers were simply "empty boxes" with no members.

Steve Webb MP, Liberal Democrat shadow work & pensions secretary told BBC News Online: "These new figures again demonstrate that stakeholder pensions have failed.

"Thousands of employers are failing to offer their workers access to a scheme.

"This is more evidence that shows pensions policy in the UK is in a mess. The Government must accept that urgent action is needed now."

Business criticism

Opra said compliance had been very good, with more than 335,000 firms setting up plans.

It was now "surveying" companies in sectors where take-up was low and inquiring whether they had set up plans and, if not, why not.

The reason why they had not fined people, a spokesman said, was that firms had been good at complying once they had received assistance from its stakeholder team.

"Opra has a strong educational role and wants to continue that, fining is a last resort," she said.

The plans to make it a requirement for certain businesses to have a stakeholder plan for staff has been heavily criticised by business groups in the past.