The Pensions Regulator has today (15th May) revealed it will carry out a series of nationwide inspections at employers it suspects are failing to comply with their automatic enrolment duties.
You can read the full announcement here: https://www.thepensionsregulator.gov.uk/en/media-hub/press-releases/law-breaking-employers-targeted-in-new-round-of-pension-compliance-checks
Tom Selby, senior analyst at AJ Bell, comments: “While the roll-out of automatic enrolment has boosted the pensions prospects of millions, it also represents a severe challenge for The Pensions Regulator.
“In 2018 there were 1.4 million* employing businesses in the UK, the vast majority of which are small and will have little to no experience of offering pensions to their staff.
“Furthermore, the complexity of the auto-enrolment rules means ensuring compliance is no easy task, particularly for smaller companies who are less likely to have a HR department. On the darker side, there may be some who don’t want to stump up the cost of providing a pension to their staff and hope they can avoid their legal obligations altogether.
“Either way, the message from the regulator is clear: we know who you are and we are coming for you.
“For businesses who fail to comply, the penalties can be severe – escalating penalty notices can be anything from £50 to £10,000 a day depending on the size of the organisation involved, while individuals involved risk being hit with civil penalties of up to £5,000.”
*Source: Federation of Small Businesses https://www.fsb.org.uk/media-centre/small-business-statistics
