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‘200,000 Jobs could go with auto- enrolment’

Auto-enrolment into pension schemes could result in 200,000 job losses, a study by the University of Warwick has found.

The study, by the university’s Institute for Employment Research department, has found that auto-enrolment into qualifying employer pension schemes and personal accounts from 2012 could lead to 200,000 job cuts due to a 2 per cent rise in labour costs for firms.

The Pensions Commission and the Department for Work and Pensions have both estimated that the cost increase will be lower, at 0.6 per cent for most firms and 1.1 per cent for the smallest firms.

But the IER’s Bernard Casey says he came to the higher cost estimate by taking account of the salary range of participants, admin costs and the potential for scheme take-up to meet Government expectations.

But a DWP spokesman says: “Automatic enrolment and the introduction of a new low-cost pension scheme will help millions of people save for later life.”


Ahead of the game

The ground rules are being mapped out for investment and pension advice but mortgage and protection advisers are still in limbo as to whether – in the case of mortgages – and how – in the case of protection – the retail distribution review will affect advice, giving rise to concerns.

Luxembourg placed on OECD white list

Luxembourg has been placed on the OECD white list of countries deemed to have substantially implemented the internationally agreed transparency standards on tax.


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