Auto Enrolment - Are you ready?

By Lancaster & Morecambe Chamber of Commerce

22 May 2014

With a name like “automatic enrolment”, it’s far too easy to just assume you don’t have to do anything: it’s automatic, isn’t it?

By Lancaster District Chamber of Commerce.

Don’t be deceived. Automatic enrolment is set to affect all employers in the UK, with some hefty financial penalties for those who fail to comply with the new legislation. Research by NEST has already shown that 20% of companies have taken over 16 months to get ready, and 66% of employers found making the changes far more difficult than expected. With the changes being implemented on a staged scale until 2017, it’s crucial for businesses to learn everything they can about the scheme now.

In a nutshell, automatic enrolment means employers have to enroll every eligible employee into an approved pension scheme if they aren’t already in a pension scheme. This includes workers aged 22 to state pension age, who work in the UK, and who earn over £9,400 a year. While people in this category are automatically enrolled, they have the choice to opt out. Likewise, anyone who doesn’t fit the eligibility criteria has the choice to opt in anyway.

One of the key features for businesses to note is the hefty financial penalties if they fail to comply. This works on an escalating scale, so a non-statutory notice can snowball into £50- to £10,000-per-day fine if companies don’t act. Employers who purposefully and persistently fail to comply with their duties will also face criminal conviction. Business owners will know too well how unnecessary expenses can floor a company’s finances, so it is critical for employers to colour between the lines.

Not anticipated in the government literature is the potential conflict between employers and employees. Employers now have to pay a minimum percentage of the pension contributions, but are simultaneously banned by law from encouraging workers to opt out. Any differences in opinion or interests could consequently make things incredibly awkward, particularly for businesses who lack access to a robust HR and employment law service.

On the plus side, employers are also required by law to explain what precisely automatic enrolment entails to their employees. While this is yet another administrative inconvenience, this at least encourages an ethos of transparency between workers and employers. To return the favour, it is important for employees to be fully forthcoming about their information, especially as collecting correct data will be a major asset in avoiding company fines.

Above all, the best course of action is to plan now to avoid being hit hard. The Pensions Regulator website allows you to find out your staging date, and their action plan tool breaks down everything employers need to do between now and then.

Employees can start by finding out if they are eligible or not: if so, you need to review whether you wish to opt out or not. If you’re not going to be automatically enrolled, you will have to start considering if you want to opt in.

If you want to consult the experts, Holdens Solicitors, working in association with Leigh Astin of Chase de Vere Financial Advisers, and the Lancaster District Chamber of Commerce can help your business in an impartial manner. They are currently offering an initial consultation and diagnostic discussion at no cost or obligation on auto enrolment to any business, so employers can receive appropriate and comprehensive advice on every legal aspect of the changes.

The Lancaster District Chamber of Commerce is a not-for-profit organization that helps make local businesses prosper. After the success of their recent automatic enrolment seminar, the Chamber have plans to host future meetings to help businesses get to grips with the new pensions regulations. Following that seminar, the following comments were received from delegates who attended:

‘A well presented, informative seminar showing what our company must do to comply with Auto Enrolment… Sarah Mounsey, Craven Concrete

‘The Auto Enrolment seminar was very well put together. We had queries explained from a delegate’s perspective. As a payroll bureau, we need advice to help our clients set up their pension scheme. Live examples were provided, showing how savings can be made. We gained invaluable knowledge showing why at least 6 – 12 moths planning is essential. As a result of the presentation, we have requested a follow-up appointment.’ Josie Smith, Accounts Matters With a plethora of new pension regulations coming to businesses soon, it certainly pays to play it safe.

Latest news

1

Chiptech announces major innovation initiative at high-profile reception with the New Zealand Prime Minister in London. The Rt Hon Jonathan Reynolds, the Rt Hon Christopher Luxon and the Rt Hon Steve Reed (L-R Front Row) David Hammond, and Daniel Knowles

Chiptech announces major innovation initiative at high-profile reception with the New Zealand Prime Minister in London.

30 Apr 2025

2

Northstone secures full planning permission for 50 new homes in Edenfield Edenfield housing development

Northstone secures full planning permission for 50 new homes in Edenfield

29 Apr 2025

3

Ring Stones Maintenance and Construction celebrates completion of Dovestone Gardens Dovestone Gardens launch

Ring Stones Maintenance and Construction celebrates completion of Dovestone Gardens

29 Apr 2025

4

PHX Training welcomes new business leader to drive learner success Louise Kirby

PHX Training welcomes new business leader to drive learner success

29 Apr 2025

5

Lidl to invest half a billion pounds in its expansion as it eyes sites in Lancashire Lidl

Lidl to invest half a billion pounds in its expansion as it eyes sites in Lancashire

29 Apr 2025

Pc Prestonmacan Gif980x120 March
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV122 May/June Launch Event
121 Lancashire Business View Magazine Launch
Networking
21 May 2025

LBV122 May/June Launch Event

Lancaster and Morecambe College, Lancaster, LA1 2TY

08:30 - 10:30

Sub36 Networking
Networking
11 Jun 2025

Sub36 Networking

British Jewellery School, Scorton, PR3 1BA

15:00 - 17:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200px 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

Planning for the future + navigating Inheritance Tax changes
Planning for the future + navigating Inheritance Tax changes for website.png.png
LBV Hub Seminars
01 May 2025 - 01 May 2025

Planning for the future + navigating Inheritance Tax changes

Stanley House Hotel, Mellor, Blackburn, BB2 7NP, Blackburn, BB2 7NP

08:00 - 10:30

A night at the races
1.png.png
LBV Hub Dinners / Balls
02 May 2025 - 02 May 2025

A night at the races

Morecambe FC, Morecambe, LA4 4TB

19:00 - 23:59

Advantage: AI – A Workshop for Business Leaders – May 2
EV-land-2025-05B.png.png
LBV Hub Seminars
02 May 2025 - 02 May 2025

Advantage: AI – A Workshop for Business Leaders – May 2

Door4 Office, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:00

Innovating business solutions through PhD Partnerships
30478 Skills Bootcamp open day setting.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Innovating business solutions through PhD Partnerships

University of Central Lancashire, Preston , PR1 2HE

14:30 - 15:30

Celebrating 50 years of KTP
UCLanAerialCampus.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Celebrating 50 years of KTP

University of Central Lancashire , Preston, PR1 2HE

16:00 - 18:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more Lbv121 Online Graphic
Subscribe now

Weekly news bulletin