Under the Pensions Act 2008, every employer in the UK must put certain staff into a workplace pension scheme and contribute towards it. The Department of Work and Pensions has confirmed that it will support proposals to expand Automatic Enrolment (AE).

The bill proposes to:

  1. Abolish the lower earnings limit for contributions (you currently need to be earning over £833.33 gross per month or £192.30 gross per week to be Automatically Enrolled).
  2. Reduce the age for being automatically enrolled to 18 (it is currently 22 years old)

The bill will not result in immediate change and there will be a statutory requirement to consult and report before any implementation.

Taxing Nannies will keep you fully informed on any developments. In the meantime visit GOV.UK for further information.