DWP publishes auto-enrolment delay timetable

The revised timetable of staging dates for auto-enrolment has been released by the Department for Work and Pensions (DWP).

In December, the DWP announced all firms due to begin auto-enrolling after July 2013 would have their staging dates reviewed.

A ministerial statement confirmed all employers with an existing staging date of on or before 1 February 2014 are unaffected.

It added medium sized employers will be re-allocated staging dates between 1 April 2014 and 1 April 2015. In some cases this means a delay of nine months.

However, Webb added about 70% of workers will be automatically enrolled before the end of this parliament, compared to about 75% under the previous set up.

Small employers will be allocated automatic enrolment dates between 1 June 2015 and 1 April 2017.

Webb added: "We plan to publish a consultation document on the detail of these changes shortly. Draft regulations and an impact assessment will be published alongside the consultation document."

The statement also revealed the government plans a one year delay in the increase in the minimum rate of employer pension contributions, from 1% to 2% banded earnings, from 1 October 2016 to 1 October 2017.

Contributions will increase to 3% from 1 October 2018.

The government announced it would be delaying auto-enrolment dates for small and medium sized businesses in November, last year. Webb said the move was initiated to give such firms "additional breathing space to prepare for the reforms while operating in tough economic times".

New start-ups (from 1 April 2012 and up to and including 30 September 2017) will have automatic enrolment dates between, and including, 1 May 2017 and 1 February 2018.

Any new employer setting up from 1st October 2017 onwards will be required to comply immediately if paying earnings which attract PAYE deductions in respect of any worker.

Source: DWP