Auto enrolment to cost UK businesses £15.4 Billion

It has been reported by the Centre for Economic Business Research that it will cost UK businesses £15.4 billion in set-up costs  to meet the requirements for the auto enrolment legislation. The report ‘Finding Your Way out of the Auto Enrolment Maze’ outlines a number of other interesting headlines:

  • Employers will need 103 man days to meet the requirements
  • The on-going administration could take in excess of 3 days each month
  • Small businesses 1-4 employees face a set up fee of £8,900

David White, who commissioned the report. “Businesses must start thinking about what they need to do as soon as possible, as they can’t escape auto enrolment”  he went on to say “There’s no benefit to businesses delaying getting their auto enrolment strategy in place, but hefty fines will penalise those who don’t meet their responsibilities in time. With the clock ticking, businesses need to start thinking now about what their duties are under the new legislation and who within or outside their business can help them achieve this”

103 days = just over 20 working weeks….getting towards half a year for 1 person full time, fully focused on delivering Auto Enrolment…WOW!

TAP Assist have long advocated a minimum of 12 months to get prepared for this legislation, this is not stakeholder all over again, this will happen. There are a number of things to consider with Auto Enrolment outside of the “Usual suspects” – continuous assessment of workers, on-going communications of any change, enrolling, opting in or out, re-enrolling, registration etc. A company must consider training for anybody in a supervisors or management role, as they represent the company and they would not want to be seen giving “advice” (potentially a £50k fine!) they need to examine their recruitment policies as well as their promotion policies.

The devil is in the detail when it comes to Auto Enrolment  (that devil comes in the form of fines, which at approximately £10 per employee per day, are massive!)

At TAP Assist we have developed a time line that allows advisers to deliver pertinent Auto Enrolment information, support and instructions at the relevant time. Offering a good quality service to your clients that does not take up all your time is the sensible way forward. We speak to a number of firms and find themselves lost in the detail of Auto Enrolment and for some clients it will potentially require a lot of “hand holding” to deliver compliance to them – this comes at a cost and advisers should not be afraid to charge appropriately for their time and expertise, but for most of an advisers’ clients they should work on a way of delivering a mass customised solution. Develop a template and deliver their services from this template.

Our training packages help you to develop a template from which you can to deliver an Auto Enrolment solution to your clients en masse, making it cost efficient for you and your client.  For more information drop us a line and we can discuss your requirements.