Small Businesses Want To Change The Rules And Offer Workplace Pensions To Low-Earning Staff
Millions of UK workers, particularly part-timers and women, are excluded from the auto-enrolment process as they earn less than £10,000
A majority of UK small businesses would favour low-paid staff be included in the auto-enrolment process, and receive a workplace pension, according to a new report by YouGov.
The survey of 398 small firms revealed that 51% would like to see the current salary cut-off point of £10,000 be lifted – while 60% believe all staff should be entitled to a workplace pension.
37% of respondents are currently paying above the minimum contribution of 1%, and it’s suggested that part-time workers, particularly women, would benefit the most if such a recommendation ever came to fruition.
Over seven million workers have been automatically enrolled into a workplace pension since the process started in 2012, with contributions from both employee and employer standing at a combined 2%, but set to rise to 8% by 2019.
Darren Philp, director of policy and market engagement with The People’s Pension, said:
“Small businesses are supportive of lower earners being brought into automatic enrolment. Their current exclusion affects part-time workers, more likely to be women, and their inclusion could over time go some way towards tackling some of the inequalities we have in our pensions system.”
Still confused about auto-enrolment? Read our dedicated guide here.