A legislative proposal to broaden the scope of the auto-enrolment (AE) programme has successfully passed through Parliament indicating that it is set to become a regulation in the foreseeable future.
The Bill aims to promote earlier and increased savings for millions of lower-earning individuals throughout the UK.
What are the regulations on current automatic enrolment?
Auto-enrolment remains a complex issue for businesses, with additional costs and payroll administration attached to the proposed changes.
Current auto-enrolment contributions depend on several factors:
What changes will the new Bill make?
The legislation provides two notable changes to Government policy in relation to AE, allowing them to:
Whilst early auto-enrolment could lead to greater retirement savings for employees, it also brings substantial obligations for businesses.
The introduction of the Bill will bring administrative changes and expenses, elevating the contributions required from employers and adding to existing payroll management challenges.
If you are concerned about how these legislative changes might affect your business, get in touch with one of our experts.