Auto-Enrolment Implementation Delayed For Smaller Businesses

Bevan & Buckland

The Department for Work & Pensions (DWP) has announced today that auto-enrolment will be delayed for small businesses.

Pensions minister Steve Webb announced in Westminster this afternoon that the introduction of auto-enrolment for smaller businesses would not go ahead until after the end of this Parliament.   Whilst this has been highlighted as affecting smaller firms (defined as those with fewer than 50 eligible employees) it could also affect firms with up to 3,000 employees, as the change takes effect with anyone due to come under the regime from July 2013 onwards.

Mr Webb pledged there would be no further delays, and confirmed that this still meant that around half of the target workforce would still be automatically enrolled on time as they were employed by firms not affected by the change in timescales.  Details of the revised timescales will be announced in the New Year.

Shadow pensions minister, Gregg McClymont, branded Steve Webb ”bureaucratic’, predictably critisising him for making “employees most in need of pension saving wait another year to be enrolled”.  

The delay of a year will be welcomed by many smaller firms, particularly those who have yet to come to terms with the changes and increased costs for smaller firms. 

If you haven’t done so yet why not download our free guide to Auto-Enrolment here.

Gareth Tregidon

Financial Planning Manager

Bevan & Buckland
http://www.bevanbuckland.co.uk

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