Government plans for auto-enrolment and Nest have been well received although concerns remain regarding the strain on small business and how the rules will be policed.
National Association of Pension Funds chief executive Joanne Segars says: “It is a relief that all employers will be brought into the 2012 programme and smaller outfits will not be exempt. The whole point of this reform is that pensions reach all workers, including those in small firms.”
CBI deputy director-general John Cridland says: “The most important thing is that all eligible employees will be included. This will mean that the reform achieves its aim of boosting pension saving for all. The Government has rightly chosen to simplify the rules for all employers rather than carve some out and leave others to cope with a high regulatory burden.”
But the Federation of Small Businesses says it is “extremely disappointed” that micro firms have not been excluded.
Syndaxi managing director Robert Reid says: “It will be hard to control. One of our clients is a fruit and veg wholesaler and he has got an empty box stakeholder. All his employees will join and leave straight away. All they are interested in is the cash. Auto-enrolment is a good idea, but the public they are trying to address need a lot more education.”