The government has published its report into small and micro employers' and workers' experiences of automatic enrolment (AE).
The research revealed that many businesses had anticipated spending weeks of their time and up to £3,000 in associated costs on AE. However, in reality, small employers found that implementation took two to three days across six months, and cost no more than £500.
‘All employers tended to take a pragmatic view about the limits of state pensions, they also tended to see AE as a necessary and sensible way to meet a future shortfall in retirement income,’ stated the report. ‘Typically, they [employers] perceived it as something they just had to ‘get on with’.’
The report was commissioned to understand the impact of AE on small and micro employers, and identify the main drivers of opt-out among employees. The findings will also inform and improve the design and delivery of this policy, as well as inform the Department for Work and Pension’s wider evaluation of AE.
