View more on these topics

The People’s Pension to add £500 employer auto-enrol charge

Pensions-savings-retirement-piggy bank

Employers using The People’s Pension for auto-enrolment will face a one-off charge to pay for enhanced support services, Money Marketing can reveal.

Businesses coming directly to the mastertrust will pay £500 plus VAT while employers working through an adviser will pay £300 plus VAT.

The new charge will be applied once when the scheme is set up and there will be no exit charge if employers decide to switch providers.

The changes will affect customers who sign up from 23 November and have staging dates in January 2016 and beyond. Employers with a staging date in 2015 but who sign up from 1 January 2016 will also be charged.

When the charging structure comes in, employers will be able to choose between a “simply comply” or “simply tailor” service, with the latter allowing a bespoke design for their schemes. Customers can also choose to automate different payroll options.

The People’s Pension’s customer service line will also have extended opening hours from January, from 8am to 10pm.

B&CE chief executive Patrick Heath-Lay says: “Workplace pensions can be alien to people outside the pensions industry. Our research and 30 years of experience working with small employers tells us they want simple solutions and a great deal of support in meeting their auto-enrolment duties. Our doors will remain open to everyone who wants to come to us, regardless of their size and their sector.

“That’s why we’ve developed a solution for busy people who just want to run their business, not get bogged down in pensions. Simplicity is the key.”

In November 2014, Money Marketing revealed B&CE – the firm behind the mastertrust – was considering adding an employer charge to cover costs at the smaller end of the market.

In September rival auto-enrolment provider Now: Pensions announced an employer charge for firms staging in 2016 and beyond.

The level of the charge will be set following a consultation but will not be more than £40 a month.



Six arrested over auto-enrol fraud allegations

Six people were arrested earlier today in Nottingham and Derby over allegations of fraud relating to automatic enrolment. It is the first time anyone has been arrested for auto-enrolment fraud. The arrests were part of a joint operation involving Derbyshire and Nottinghamshire Police, The Pensions Regulator and the Employment Agency Standards Inspectorate. In Derby three […]


Ian McKenna: Embrace technology to boost auto-enrol advice

While most in the individual advice market are still trying to get to grips with what digital advice means for them, it appears many corporate firms have made a clear decision to embrace it. Automatic enrolment extending to small and micro businesses represents an excellent opportunity for all firms to incubate their digital advice propositions. […]

Charles Counsell 700 x 450

Lost in the post: Employers challenge regulator over auto-enrol enforcement

Employers have questioned The Pensions Regulator’s enforcement action over auto-enrolment in 379 cases, new figures show. In one example provided by TPR, an employer challenged a £400 fixed penalty because they said they had not received the notice as their post “was frequently delivered to the wrong address”. However, the regulator rejected the appeal as […]

Adrian Boulding L&G 2012 - correct size

Now: Pensions to add employer auto-enrol charge

Automatic enrolment provider Now: Pensions is to introduce an employer charge of up to £40 a month from next year. The announcement comes as the provider launches a month long consultation aimed at finding out the needs of small employers. Concerns have been growing that firms yet to auto-enrol will have to turn to Nest […]


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. Another reason for small firms to opt out.

  2. I wonder how many one man companies will be left in a few years.

  3. So we have a two tier system, the early joiners who paid nothing, the later joiners that now pay £500, surely they have to treat ALL members equally – what is the regulator and HMRC doing about this two tier system

Leave a comment