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Employee Benefits News

Latest News
25 Nov 2013

One In Three SMBs Plan To Ignore Auto Enrolment

In 2014, approximately 38,000 UK companies will have to enrol their staff into workplace pension schemes under the next phase of the large-scale government initiative to boost pension savings in the country.

Since the start of auto-enrolment last year, the largest British employers have already completed the process. The next stages will see small and medium-sized businesses do the same, until every single firm in the UK has enrolled its employees by 2018. The total number of workers expected to save for retirement at the end of the scheme implementation is around 11 million.

However, as the focus now shifts onto smaller companies, a range of problems are arising. SMBs generally have fewer resources to utilise, and many seem totally unprepared for the process at present. According to statistics published by Real Business website, about two in three small businesses admit they have little or no knowledge about auto enrolment. Even more worryingly, one in three companies go even further by stating that they will simply ignore the legislation.

Yet, businesses that choose to be non-compliant may face troubles that are far worse than implementing the reforms. If they fail to auto-enrol their staff, businesses may be fined up to £500 for each day of non-compliance, the website warned.

Companies unsure about what their next steps should be could seek advice on how to go about implementing the necessary changes. Guidance is provided by the Pensions Regulator as well, Real Business pointed out.

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