Auto-enrolment to hit 200,000 jobs

Jenna Towler
clock

Auto-enrolment could lead to 200,000 job losses at smaller firms as labour costs will increase by around 2%, academic research predicts.

From 2012 workers will be auto-enrolled into a qualifying work place pension, or the personal accounts scheme, unless they opt-out. Pension Commission, and later the department for work and pensions, research estimated labour costs of 0.6% for all firms, and 1.1% for the smallest firms. However, a study from the University of Warwick’s Institute for Employment Research said the figure would stand at 2% when administration, target market salary levels and predicted take-up rates are taken into account. Author Bernard Casey surveyed small employers and questioned them on th...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

L&G becomes first pension provider to complete dashboards ecosystem connection

L&G becomes first pension provider to complete dashboards ecosystem connection

Provider finalised its connection to the ecosystem today

Holly Roach
clock 17 April 2025 • 1 min read
How public sector pensions impact divorce proceedings

How public sector pensions impact divorce proceedings

'The ripple effects of the McCloud Remedy continue to be felt in divorce proceedings'

Vanessa Gardiner
clock 15 April 2025 • 5 min read
Pension freedoms and lessons from Down Under

Pension freedoms and lessons from Down Under

How the UK can build a more 'robust and supportive' system

Verona Kenny
clock 09 April 2025 • 4 min read