An influential committee of MPs has today launched an inquiry into automatic enrolment, focusing on how the reforms affect smaller employers.
The Work and Pensions committee has requested written evidence on the implementation of auto-enrolment and the impact it will have on small and micro employers.
The committee will focus its inquiry on the suitability of the auto-enrolment earnings threshold, currently set at £10,000, and minimum contribution rates; the effect of the Government’s decision to delay increases to minimum contributions; and the way auto-enrolment is interacting with other pension reforms, including the retirement freedoms introduced in April and the state pension.
They will also look at the overall impact of auto-enrolment on smaller employers and how they plan to mitigate any negative effects; and whether the support provided by Government needs to be improved.
Work and Pensions committee chairman Frank Field says: “Automatic enrolment is generally perceived as being successful to date, but in the early stages of delivery it was only large and medium-sized employers that had to meet these new pension requirements.
“Time has now come for smaller employers, including people who would not consider themselves business people – such as those who employ nannies and carers – to participate. We must ensure they are in a position to cope with these new obligations.
“We will also look at contribution rates and criteria for inclusion in auto-enrolment, to ensure that the right people are defaulted into saving adequately for retirement.”