Personal tax allowance hike could force up AE threshold to £9,440

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The auto-enrolment earnings trigger could be pushed up to £9,440 following a surprise increase in the personal tax allowance in yesterday's Autumn Statement.

Industry figures have expressed concern that fewer workers could benefit from auto-enrolment if the trigger is increased in line personal tax allowance, the amount earned before income tax kicks in. The chancellor revealed the personal tax allowance is set to rise to £9,440 in 2013 from £8,105 currently, £235 more than expected. The auto-enrolment earnings trigger stands at £8,105, but the Department for Work and Pensions (DWP) is currently consulting on raising this to £9,205 - the previous expected income tax threshold before yesterday's surprise rise. Allen & Overy pensions lawy...

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