Home > News > 2011 > November 2011 > Barnett Waddingham comments on Sunday Telegraph Auto-Enrolment delay article
Barnett Waddingham comments on Sunday Telegraph Auto-Enrolment delay article
Malcolm McLean, a consultant at the pensions actuaries and consultants Barnett Waddingham, commenting on the Sunday Telegraph article that an indefinite delay on auto-enrolment for pensions for any firm with fewer than 50 employees is likely to be announced as part of the Chancellor’s Autumn Statement on Tuesday, said:
“From a pension and long term savings point of view this is disappointing news, if true.
“There was always the risk that the Government would lack the courage of its convictions and back away when push came to shove.
“But coming at this very late stage when the main legislation giving effect to auto-enrolment has been passed and when both DWP Ministers and their opposition counterparts have in recent weeks seemingly been at pains to re-assure us that the plans were firm and would go ahead – notwithstanding the economic situation – this also comes as a bit of a surprise.
“The concern to help and sustain small to medium size employers through the current economic downturn is, of course, understood but that could be done in other ways – perhaps by offering greater fiscal support to them via the tax system to offset in part at least the extra cost of the pension contributions they were having to make. It is also a fact that many of the employees of these sorts of companies are the very ones who are most in need and stand to gain most from having an employer backed pension scheme. Why should they miss out when others who happen to work for slightly larger concerns stand to gain?
“The point must also be made that many employers have already put much time and effort in preparing themselves and their workforce for the coming of auto –enrolment and substantial changes of this nature at such a late stage and the abortive work they might have incurred in consequence will hardly be welcome news.”
For more information please contact Malcolm McLean or Steph Gold