Govt pockets £840m as it delays auto-enrol contribution rise


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.



BBA warns Treasury against capping Isas in Autumn Statement

The British Bankers’ Association has warned the Treasury against any cap on the total amopunt held in Isas, claiming it would undermine the Isa brand and stability of savings. Over the summer the Government floated the idea of a £100,000 Isa cap to stop tax incentives for “Isa millionaires”. But in its submission to the […]


Autumn Statement: Calls to scrap pension exit fees and extend stamp duty exemption

By Sam Brodbeck and Tessa Norman George Osborne is being urged to use next week’s Autumn Statement to scrap pension exit penalties, the new annual allowance taper and extend the stamp duty exemption to equity Isas and Sipps. Ahead of the Chancellor’s speech, Hargreaves Lansdown head of pension research Tom McPhail says the Government needs […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment