Incredible rise in fines for failures on pensions
An incredible rise in fines for businesses neglecting to enrol their workforce in a workplace pension as businesses find it difficult to cope with the biggest change to retirement savings in generations.
According to The Times, this has resulted in over 3,800 businesses being given fines between July and September, compared to 861 in the previous 3 months. This means a number of businesses being fined for neglecting to provide staff with new Government pensions have rocketed 14 fold within three months.
As nearly 6 million workers have enrolled into the new scheme which is designed to encourage them to save for retirement. Failing to comply will result in penalties of up to £500 per day for businesses with more than 5 employees, while those having 4 workers or fewer face penalties of £50 each day.
Between October and December last year, as businesses became obliged to give staff pensions for the first time under auto-enrolment, the Pensions control issued warning letters to 2,596 firms who failed to establish the arrangements by the due date. An average of 28 letters was sent on a daily basis. According to the Guardian, “the number of compliance notices issued in the first quarter of this year was 3,057, compared with 2,596 in the final three months of 2015. However, the number of £400 fixed penalties imposed fell, from 1,021 to 806.”
Acorn To Oaks has experience of working with a range of different types of businesses and we can help firms to be compliant for a reasonable cost. Please don’t wait to get your pensions sorted, these fines are avoidable and with our expert advice we can get you up and running without delay. Call our team today on 01902 409 414 and we will get you setup as fast as we can.