The Pensions Regulator has conducted research which has revealed that employers are relying to an increasing extent on the assistance of advisers and intermediary firms to help them meet their responsibilities with regards to Auto Enrolment.
The Pensions Regulator conducted two separate surveys. The first of these was aimed at employers and gauged their understanding and readiness in regards to their new Auto Enrolment responsibilities. The second of these gained the opinions of intermediaries such as bookkeepers, accountants and payroll administrators. This gave information on the amount of Auto Enrolment assistance that they were planning to provide to clients.
Key Findings of the Employer Survey
The Pensions Regulator found that, in general, companies in the UK are putting in place preparations to help them meet their Auto Enrolment responsibilities and obligations.
The survey found that:
- Of employers whose staging date was between August and November 2015, nine out of 10 had begun commencing their Auto Enrolment
- Auto Enrolment awareness was at its highest in micro and small sized businesses
- 70% of small businesses said they would be relying on practical assistance from an adviser to help them with their Auto Enrolment
- Almost four out of five employers whose staging date was in 2015 knew that this was the case
- But only 29% who were commencing Auto Enrolment in the period between January and November 2016 knew exactly when their obligations were due to begin
Key findings from the Advisers and Intermediaries Survey
Virtually all intermediaries who took part in the survey were aware of the Auto Enrolment changes and the obligations they bring. Many of these intermediaries are preparing an Auto Enrolment service to offer to their clients. Findings included:
- Auto Enrolment awareness among bookkeepers, accountants and payroll administrators was 94%, 97% and 98% respectively.
- On the whole, a majority of payroll administrators were confident that they could respond to any queries their clients might have about Auto Enrolment. 54% believed they had the ability to answer any potential questions
- Payroll administrators were the most prepared to take an active role in the Auto Enrolment of their clients. Rather than simply providing their clients with advice or information, 71% of payroll administrators said they were ready to act on behalf of their clients. This compared to 53% of IFAs, 44% of accountants and 42% of bookkeepers
- Payroll administrators, bookkeepers and accountants were all largely planning on providing services to micro businesses. 96% of those surveyed said this was the case for them
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If you need more information on Auto Enrolment, contact us today!