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Now: Pensions reveals new charging structure

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Now: Pensions has unveiled a new charging structure that will see employers pay up to £36 plus VAT a month to use the scheme.

The auto-enrolment provider announced in September it would be adding an employer charge for firms staging from 1 January 2016.

Following a consultation, it says new employers will pay £36 plus VAT a month or £20 plus VAT if they use a payroll bureau, or £12.50 plus VAT if they employ fewer than five people.

Chief executive Morten Nilsson says: “Employers and their advisers have told us loud and clear what they want and we’ve listened. Auto-enrolment is a cause of considerable anxiety for many smaller firms and the new services we’re introducing should provide much needed comfort.

“One message that came over both in the consultation and in our previous experience is the critical role that payroll bureaux play supporting their clients with auto-enrolment.

“Employers that come to Now: Pensions via a payroll bureau are significantly better prepared and require less support than those that come direct and we have reflected this in the employer service charge.”

Now: Pensions has recently opened a new office in Nottingham and trebled its headcount in anticipation of the deluge of small and micro-employers hitting staging dates.

Consultation findings

  • 63 per cent of small employers would not describe themselves as confident when it comes to handling the administration of their pension scheme.
  • 72 per cent of micro employers would not describe themselves as confident when it comes to handling the administration of their pension scheme.
  • Nearly half (46 per cent) of small employers have already started their auto enrolment planning. But, three quarters (75 per cent) of micro firms have not given it any consideration.

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