Steel company Tata has formally announced it is to separate its UK pension scheme from the business.

It could mean a potential merger between the Indian-owned firm and the German steel producer ThyssenKrupp is more likely to move forward.

The £15bn British Steel Pension Scheme (BSPS) has been a significant barrier to any agreement.

The deal affects thousands of current and former workers, with 130,000 steel pension scheme members across the UK.

Nicola Parish, executive director for front-line regulation at the Pensions Regulator, explains the options for steel workers and says its involvement was a rare step.