Regulator to crackdown on firms flouting auto-enrolment rules
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.