Dairy Crest, the dairy foods company that still delivers milk door-to-door, is holding talks with the 3,300 employees who are members of its defined benefit pension scheme about how to curtail retirement costs, including closing the scheme to current workers.

Alistair Murray, Dairy Crest group finance director, said that other options include slowing the rate at which workers accrue pension entitlements, changing the definition of pensionable pay or basing pensions on average earnings over a career rather than as a percentage of final salary. “We want to hold a proper consultation,” Mr Murray said, adding that no firm decision had been made.