The Pensions Regulator spent more than £10m more in 2012 to 2013 than it did the previous year, due in large part to spending related to auto-enrolment.
According to The Pensions Regulator’s annual accounts, payroll staff costs increased by £4.6m year-on-year to £23m and non-payroll staff costs increased by £100,000 across the organisation including a £600,000 increase in respect of levy and a half-million pound decrease in respect of auto-enrolment.
However increases in staff levels to cover the requirements of auto-enrolment accounted for the bulk of the increased costs.
Michael O’Higgins, chairman of the regulator, said: “Automatic enrolment has made a promising start among the largest employers but significant tests lie ahead for the regulator and pensions sector as we look to help prepare medium and small employers.
“In the last year we have also consulted on our approach to regulating DC schemes and we continue to work with the Department for Work & Pensions and Financial Conduct Authority to improve quality standards across the DC landscape.
“It has continued to be a challenging economic climate for DB pension schemes. We published statements in 2012 and 2013 to help trustees and sponsoring companies to agree appropriate funding plans, and later this year we will review our DB strategy and funding code of practice.
“Importantly, we also responded to the rise in pension liberation fraud with a cross-government awareness campaign targeted at trustees, providers and pension scheme members, and will be undertaking compliance and enforcement activity in the future.”