Govt confirms no change to 0.75% auto-enrolment charge cap

But 'clearer case' for change expected in 2020

clock • 2 min read

The government will not change the level or scope of the 0.75% charge cap on auto-enrolment (AE) schemes, Guy Opperman has confirmed.

In a written statement to Parliament, the pensions and financial inclusion minister said "we do not feel now is the right time" to make any changes to the cap which "is working broadly as intended". Nevertheless, the Department for Work and Pensions (DWP) does expect "a much clear case for change" to be apparent at the next review in 2020, using evidence gained from the recently announced mandatory publication of costs and charges in defined contribution (DC) schemes. Opperman wrote the regime will enable trustees, independent governance committees and members to "monitor and evaluate...

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