MPs to probe impact of new rules that force SMEs to enrol workers into a pension


Small firms must sign up employees into pensions under a government shake-up known as auto-enrolment.

But some face fines because they do not realise the rules apply to them.

This is particularly the case for families employing nannies, and the sick and elderly who have taken on carers.

The Work and Pensions Select Committee is to examine if the Government needs to offer more support to help small firms with the rules.

Work and Pensions Committee chairman Frank Field says: ‘Auto enrolment is generally perceived as being successful.

The time has now come for smaller employers to participate. We must ensure they are in a position to cope with these new obligations.’

Research we reported on in March 2015 highlighted that whilst the majority of SMEs intend to comply with the legislation 3 per cent said that they would not or could not comply which equates to around 45,000 small businesses in total.