Coronavirus  

Could AE contributions be paused amid the Covid-19 crisis?

He also noted that it would not be a straightforward process, as some employers may still be able to afford making the contributions.

“Others may be contractually obliged to pay one anyway, so a simple change to auto-enrolment wouldn’t automatically help those employers,” he said.

Mr Scholefield also noted that implementing such measure could be a challenge.

“It would be difficult to decide when a break should begin and, more importantly, end. Different sectors and employers will be affected in different ways, some of which may continue long into the future.”

Nevertheless, he would support such a decision.

“Given that many employees are probably more urgently in need of pay today than a pension contribution, it would seem unduly dogmatic not to allow a pension contribution to be treated in the same way as other earnings. If that requires a temporary suspension to the auto-enrolment laws, then it is a price worthy paying.”

maria.espadinha@ft.com

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