View more on these topics

Govt cuts likely to hit auto-enrolment policing


Experts have warned the success of automatic enrolment will be put at risk if The Pensions Regulator is forced to accept a 9.5 per cent budget cut in 2015/16.

Last week, Chancellor George Osborne delivered his spending review speech to Parliament and set out departmental budgets across Government for 2015/16. The Department for Work and Pensions is facing a budget cut of 9.5 per cent.

A DWP spokeswoman says the Government has yet to decide whether TPR’s budget will need to be reduced in line with the cuts facing the department as a whole.‘pen

She says: “The plans will be worked through by the department as they always are when the Treasury announces a high level spending review.”

Following the 2010 spending review, the DWP’s overall budget was reduced by 25 per cent.

In April 2011, TPR confirmed its budget would be cut in line with the DWP budget over a four-year period. The regulator’s budget for 2011/12 was £42.1m.

In July last year, the regulator said a combination of lack of resource and unplanned calls on its resources meant some key aspects of its corporate plan for 2011/2012 were not delivered.

Aegon regulatory strategy director Steven Cameron says: “The ban on consultancy charging means advisers are less likely to help employers, which puts more onus on the regulator to make sure employers get the help they need through other routes.

“Having to do so with less money would be a challenge and presents a risk to the success of auto-enrolment.”

Hargreaves Lansdown head of corporate research Laith Khalaf says: “There is a big question about TPR’s ability to regulate and police auto-enrolment on a very limited budget. Clearly cutting its budget further would exacerbate that problem.”



FOS refers 13 claims firms to MoJ over bad practice

The Financial Ombudsman Service has referred 13 claims management firms to the Ministry of Justice for “unreasonable” behaviour. The FOS began recording formal referrals to the Claims Management Regulator, part of the MoJ, in autumn last year. A freedom of information request submitted by Money Marketing reveals three claims firms were reported to the MoJ […]


Could small firms be excluded from auto-enrolment?

The Government has opened the door to the possibility of excluding small firms from automatic enrolment after inserted a clause in the Pensions Bill which allows policymakers to exempt firms if the reforms pose an “unreasonable” financial or legal risk, warns Legal & General.  Auto-enrolment has already been delayed until June 2015 for firms with […]

Thinktank calls for BTL lending cap to boost home ownership

A new report into the private rented sector is calling on the Government to cap buy-to-let mortgage lending and ban landlords from buying new-build homes in a bid to boost home ownership. The Strategic Society Centre paper, Whose Home? Understanding Landlords and their effect on public policy, calls for Government to tip the balance back […]


Sammedia buys 49% stake in tech firm Suitable Strategies

Sammedia has bought a 49 per cent stake in former Skandia head of strategy Neil Bage’s start-up technology firm Suitable Strategies for an undisclosed sum. Suitable Strategies and Sammedia have built Consumer 3D, a research-based technology solution that profiles consumers based on their financial capability. The tool identifies a customer’s understanding of financial services language, concepts and […]


News and expert analysis straight to your inbox

Sign up


There are 3 comments at the moment, we would love to hear your opinion too.

  1. “the regulator to make sure employers get the help they need through other routes.”

    I’m not going to claim that the adviser community is the be all and end all but who is going to provide the help that they need? Someone has to pay.

  2. AE is turning into a watered down face already.

  3. concerned employee 5th July 2013 at 10:14 am

    What the point of having the fines of up to £10K per day if you have no one there to hand them out.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm