DWP confirms auto-enrolment delay

28 November 2011 10:52 am

The DWP says it will make an announcement this afternoon about changes to the timetable for auto-enrolment, but says reports in the Sunday Telegraph that firms with less than 50 employees will be exempted from the requirements indefinitely are inaccurate.
The Sunday Telegraph reported that an indefinite delay on auto-enrolment for firms with less than 50 employees was set to be announced as part of the Chancellor’s autumn statement tomorrow.
The u-turn follows the Beecroft report recommendation that auto-enrolment be delayed. The Department for Business has accepted that auto-enrolment for all companies will cost businesses around £3bn.
The move will mean around 7m employees will now be automatically enrolled later than expected. Some experts have pointed out the move will increase reliance on means-tested benefits and will change Nest’s business proposition.
A spokesperson for the DWP says: “The Telegraph report is not correct. Every worker will be automatically enrolled. There will be a delay, but to say that auto-enrolment is indefinite is incorrect. Details will be published this afternoon at around 2.30.”

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