View more on these topics

Auto-enrol fines spike as firms miss deadlines

UK-Currency-Money-Pound-GBP-700x450.jpg

The Pensions Regulator issued 576 escalating penalty notices to employers that failed to comply with auto-enrolment rules between July and September, more than 15 times the amount in the previous three months.

Between April and June, TPR handed out 38 escalating penalty notices. Employers that receive such a notice will receive a penalty of between £50 and £10,000 per day, depending on their size.

The number of fixed penalty notices given out, where employers are fined £400, increased more than four times on the previous quarter’s amount.

Between July and September 3,728 fixed penalty notices were issued compared to 861 between April and June.

TPR says the increase in penalties comes as there was a 50 per cent increase in employers reaching their deadline to comply with auto-enrolment rules.

The latest compliance and enforcement bulletin from the regulator says many reasons employers give for non-compliance, for example illness or being short-staffed, are not “reasonable”.

TPR auto-enrolment executive director Charles Counsell says: “We recognise that employers have unique circumstances and challenges, but the law is still the law. Employers who are struggling should contact us, we are here to help – do not wait for a fine.

“The vast majority of employers are successfully meeting their auto-enrolment duties and are doing the right thing for their staff. A small minority do leave plans too late but in most cases the nudge of a compliance notice is enough to get them back on track and avoid a fine.”

Pensions minister Richard Harrington adds: “So far, more than 250,000 employers are helping more than 6.7 million people save into a workplace pension. The duty is being extended to all UK employers and they must ensure they enrol their staff into a scheme by the deadline for their firm, it’s the law.”

Recommended

Charles Counsell 700 x 450
2

TPR slashes auto-enrol estimate by up to 480,000 firms

The numbers of firms who will have to comply with automatic enrolment regulations has been slashed by up to 480,000 firms. New figures from the Pensions Regulator shows it expects between 1.32 million and 1.46 million employers will have duties under auto-enrolment rules. At the same time last year, TPR estimated 1.8 million firms would […]

2

Changing of the guard: Is TPR up to the job of regulating pensions?

The collapse of British Home Stores and the impact of the pension freedoms agenda has reignited calls for The Pensions Regulator to be scrapped and sub-sumed by the FCA. The Work and Pensions Committee has taken TPR to task over agreeing an extremely generous 23-year deadline for trustees of the retailers’ pension fund to fill its huge […]

Queen reading her speech 2014

Govt hands TPR new powers in master trust clampdown

The Government is acting to protect millions of auto-enrolment savers through new standards for master trusts and greater powers for the Pensions Regulator. Following today’s Queen’s Speech, the Government unveiled a Pensions Bill that will add new protections and extend a cap on pension exit fees. The accompanying document reveals master trusts – which includes […]

Johnson Fleming is a finalist at UK Pensions Awards 2016

The UK Pensions Awards shine the light on excellence and recognise the advisers, providers and investment managers that offer the highest level of innovation, performance and service to occupational pension schemes and their members. This year’s awards looked at advisers and providers across 31 different categories and were rigorously judged by a panel of senior […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. No kidding Clyde! Who would have guessed? It will get worse. And what is the Regulator going to do if firms don’t pay up? Liquidate them? Then no pension and no job. Great outcome.
    There are around 5.5 million private sector businesses in the UK. 250k enrolled so far is 4.5% – a drop in the ocean. And that is not counting those that that daft ‘Workie’ thinks should be in – nannies, gardeners, daily helps etc.
    It is about time the bureaucrats got real. This is a woebegone scheme that doesn’t really suit small firms. It is inflexible (doesn’t recognise single premiums) and adds far too much admin to already overburdened red tape requirements.
    If you want people to have a decent pension – increase tax and make the state do its duty.

Leave a comment