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Regulator to crackdown on firms flouting auto-enrolment rules

Joanna Faith
Written By:
Joanna Faith

The Pensions Regulator is to carry out nationwide inspections of businesses suspected of failing to comply with their automatic enrolment duties.

The inspections will focus on employers who are suspected of failing to put staff into a pension scheme or who make no, or incorrect, pension contributions.

Under auto-enrolment rules that came into force in 2012, all employees aged 22 to state pension age who earn at least £10,000 a year must be put into their workplace pension scheme unless they explicitly opt out.

Auto-enrolment has seen the number of workers saving into a pension jump from 47% in 2012, to 73% in 2017.

Darren Ryder, of The Pensions Regulator (TPR), said: “We know the vast majority of employers are doing the right thing for their staff, however there are a small minority who persistently ignore their responsibilities. They can expect a knock at the door from us and enforcement action.”

The inspections will start this week and continue over the summer.

For businesses who fail to comply, fines will range from £50 to £10,000 a day depending on the size of the organisation.