Pensions minister warns small firms not to expect ‘reprieve’

Steve Webb MP, minister of state for pensions, said the coalition government was “absolutely committed” to forcing all employers to offer their staff a workplace pension and that small employers should not expect to get a “last minute reprieve” from the proposals.

Speculation has been widespread that the government could eventually decide to exclude small firms from the rules, following its move to delay to introduction of the rules until after the next election.

However, in the first of an exclusive two-part video interview for FTAdviser, to be published on Wednesday (8 February), Mr Webb said the coalition government looked very hard at whether small employers should be allowed not to have to auto-enroll their staff in a pension.

Speaking to sister title Financial Adviser’s senior reporter Aamina Zafar, Mr Webb said after careful consideration the coalition government decided it was not appropriate that small companies should not have to offer their staff a pension.

He said: “Everybody will be in. It was always going to a roll out over four or five years. It was never going to be done overnight.

“What we have said is more than four million people will have been auto enrolled by the time of the next election. There will be tremendous momentum.”

The first part of the video interview will be published online on Wednesday, with the second installment following a week later.