MPs to launch inquiry into small business auto-enrolment
Work and pensions committee are set to renew investigation on the implementation and effect of auto-enrolment on the UK's small employers
In light of concerns over small businesses getting to grips with automatic enrolment (auto-enrolment), it has been announced that the work and pensions committe will launch an inquiry into the impact of auto-enrolment on the UK’s small and medium employers.
Following an earlier investigation by the committee in 2014, it will now renew its inquiry and has asked for written evidence on the implementation of auto-enrolment and its effect on small firms; including minimum contribution rates, delays and the suitability of the auto-enrolment earnings threshold.
Auto-enrolment requires UK employers to enrol staff in a workplace pension. According to the government’s latest staging date, employers with fewer than 30 employees need to start enrolling their staff in a workplace pension from January 1 2016 with the deadline set for April 1 2017.
On the auto-enrolment review, Aviva business solutions managing director; Andy Beswick, commented:
“It’s sensible that there is going to be a review of how auto-enrolment is going to impact very small companies. All employers will have to set up a workplace pension scheme for their employees and it’s important that the process is well thought through to make it as smooth as possible.
“Planning is key here. Small and medium enterprises of all sizes should be looking now to find out when their staging date is so they can begin to prepare. Start doing your research now and the process will be much easier in the future.”
Find out what auto-enrolment means for your business here.