Did you know about the new auto-enrolment legislation that is already being enforced? Well, we recently surveyed more than 2,300 small businesses in the UK and were surprised that more than a third didn’t know what auto-enrolment was, and more than two-fifths say the extra expense will affect hiring new staff.
The new legislation will force all businesses in the UK to contribute to their employee’s pensions, by February the 1st 2018 at the latest. All employees will be automatically enrolled into their work pension scheme unless they choose to opt out. Noncompliance can result in hefty fines and even imprisonment for business owners and directors.
When asked ‘has your business already complied with pension auto-enrolment?’ more than a third (35%) of respondents didn’t know what auto-enrolment was, a third (33%) answered no. More than two-fifths (43%) of respondents answered that the expense of contributing to employee’s pensions will affect hiring new staff and almost two-thirds (62%) think that the majority of their staff will stay ‘opted in’.
We asked respondents if they think there has been enough support and information for small businesses about auto-enrolment, more than two-thirds (65%) answered no, compared to just a third (35%) who said yes.
In reaction to the survey, we decided to team up with the Auto-Enrolment Bureau to create a handy guide on what small businesses need to know about auto-enrolment, which can be accessed below.