Thursday, 24 May 2018

    Employers support auto-enrolment delay

    Eurozone crisis and economic woes mean costs too great

    A majority of employers feel the introduction of auto-enrolment should be delayed as a result of the continuing crisis in the Eurozone and poor economy making costs of complying less affordable.

    A survey of small-to-medium businesses by Jelf Employee Benefits found 63% of employers were in favour of a delaying auto-enrolment as they felt the costs of complying were too great and were ill-affordable at the present time.

    Steve Herbert, head of benefits strategy at Jelf Employee Benefits, said the economic outlook was “exceptionally bad, and possibly the worst scenario for more than a century”.

    “Auto-enrolment will add extra costs and duties to already hard-pressed employers, at a time when they can least withstand such extra burdens,” he added.

    Herbert also said wage growth was likely to be low for the next 5 to 10 years, while high inflation meant many lower paid workers, for whom auto-enrolment was largely designed to help, would find it hard to find spare money for pension saving.

    “Launching auto-enrolment against this backdrop increases the risk of a failure of this vital legislation, and given the fragile state of UK pension provision we would urge the government to listen to employers,” he said.

    The survey found 28% of respondents in favour of continuing with auto-enrolment on the current schedule, with 9% not sure.

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