The government is set to roll out a refreshed auto-enrolment advertising campaign to make sure smaller companies are aware of their duties around workplace pension schemes.
From today (6 July), adverts fronted by former Dragons’ Den star and entrepreneur Theo Paphitis will be broadcast across the country.
More than 47,000 large and medium-sized employers have already completed the process of automatically enrolling their workers, with the focus now shifting to the 1.3m small and micro firms that will have to offer their staff a workplace pension between now and 2018.
Pensions minister Ros Altmann said: “The switch to small and micro firms brings with it new challenges, which is why we’re working closely with business organisations and others to ensure they have the right level of support at every step of the way to help them through the process.
Under automatic enrolment, employers and their employees, who are at least 22 and under state pension age, earning more than £10,000 a year, will have to make regular contributions to a workplace pension scheme, unless they choose actively to opt out. The government also contributes through a tax-break.
Last month small and micro employers of between one and 49 workers started to automatically enroll their staff into a workplace pension. By the time the process is complete in 2018, up to 9m workers will be newly saving or saving more in workplace pensions, according to the Department for Work and Pensions.
People have the right to opt out, but nine out of 10 are choosing to remain in with younger workers among the most likely to do so.
peter.walker@ft.com
