Two planned rises in minimum contribution rates under auto-enrolment have been delayed, the Government has announced.
The move will save the Treasury £390m in 2017/18 and £450m in 2018/19.
As part of today’s Autumn Statement Chancellor George Osborne said the increases would be aligned with the tax year to ease the burden on employers.
He said: “Over five million people have already been auto-enrolled.
“To help business with the administration of this important boost to our nation’s savings we will align the next two phases of contribution rate increases with the tax years.”
Under previous plans minimum contributions would have risen from 2 per cent of qualifying earnings, to 5 per cent from October 2017 and to 8 per cent from October 2018.
Now the rise to 5 per cent will take effect from April 2018 and to 8 per cent from April 2019.
As part of the announcement the Chancellor also set the new single-tier state pension at £155.65 a week, the basic state pension at £119.30 a week.