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Earlier this week, the PPF has announced it intends to keep the 2010/11 levy stable at £700m, indexed by wage growth. Something which the PPF claims fulfils a commitment made in August 2007, when the fund said that it would keep the levy estimate stable for three years. (See story.)

But OPT claims that the PPF is placing an unnecessary burden on private sector companies that are already struggling to maintain defined benefit pension schemes, by failing to exclude public sector pay rises from its calculations.

Ben Shaw, OPT development director, said: "Official figures show that private sector wage growth was running at just 0.3 per cent, including bonuses, in the year to April, far below the 3.6 per cent rise recorded for the public sector.

"It is only private sector companies who pay the PPF levy so any indexation should aim to reflect their circumstances as closely as possible.

"The PPF gives the impression it is treading water on levy rises to help companies through troubled times. Taking a large levy does help narrow its growing funding deficit, but is also likely to lead to more employers collapsing."

Notably, the Confederation of British Industry (CBI) has raised the prospect of negative pay growth in the private sector in the coming months.

Overall, 55 per cent of companies are thought to be planning pay freezes in the next 12 months, while 4 per cent are set to impose wage cuts.

Shaw added: "Last year’s levy rise from £675m to £700m was a 3.7 per cent increase but, in a period when inflation has fallen below zero and depressed wage growth, it is difficult to believe this was proportional.

"And of course the devil will be in the detail – every company will have to wait until the scaling factor is announced to know exactly how big their levy rise will be and the impact on their business."