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From today, every employer has a new legal duty to automatically enrol certain workers into a qualifying workplace pension scheme. Up to 10 million people are expected to be eventually enrolled in what is hailed as the biggest pension revolution since Liberal prime minister David Lloyd George ushered in state pensions a century ago.
Currently, the largest employers with 120,000 or more workers, must place eligible workers into pension schemes, with other firms gradually being enrolled in a staging process over the next six years. More than half a million people will be newly saving into a workplace pension by Christmas, according to Government estimates.
“The 1st of October is a new dawn for pension savers, with millions more workers being helped to save towards a pension with a contribution from their boss,” said John Cridland, CBI Director-General.
“The message from business is: ‘we’re in’. Firms are committed to helping staff achieve a good income in retirement, and the hope is that auto-enrolment will encourage employees to think long-term about their finances to achieve this goal.
“Boosting pension savings will help us look after our increasing number of elderly people and tackle the ticking retirement time-bomb.”
The news will come as no surprise to subscribers to Staffing Industry Analysts research services. We have covered the changes in the news since December last year.
The changes were also discussed in depth at our CWS Summit in London in May 2012 while Kathryn Weaver covered the new law in our recent webinar. John Nurthen from Staffing Industry Analysts has written about the impact this will have on the UK staffing industry recently in our CWS 3.0 online magazine.