Partner Anne-Marie Winton comments in FTAdviser, Pensions Expert and Pensions Age on the effects of the Chancellor’s Job Support Scheme on pension contributions
HM Treasury has confirmed that its new Job Support Scheme will not cover employer pension contributions, which has raised concerns about how employers will comply with auto-enrolment obligations. Further guidance will be published in the coming weeks which will set out how employers should calculate pension contributions under the new scheme.
Announced today as part of the government’s ‘Winter Economy Plan’, the Job Support Scheme will see the government contributing towards the wages of employees who are working fewer than normal hours due to decreased demand.
Anne-Marie Winton commented:
“These new changes have the results to generate significant additional confusion amongst already stressed and confused employees and employers about how to correctly operate automatic enrolment. The potential for errors is huge, so I would hope that there will be a very lenient approach from the Pensions Regulator to accidental non-compliance.”
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