Now the story develops further as Henry Tapper, director of First Actuarial (a pension services provider), has spoken to HR Magazine to confirm rumors that the planned cap on pension fees will be delayed until April 2015.
Whilst his sources cannot be named and no Government statement has been released, Mr. Tapper predicts that an official announcement will be made in the coming weeks. Furthermore, his unnamed ‘industry sources’ have suggested that the cap may in fact be scrapped all together!
To provide some basis for these theories, Tapper is quoted as saying “…the charge cap is being kicked into the long grass by the Government, which is worried that by depressing charges on individuals, the charges will simply be transferred to employers…The impact of that will be that employers will not be able to invest in their businesses in the same degree and the Government’s growth agenda will be in peril.”
He did also express the opposing view (which HR bloggers appear to be backing) by suggesting the possibility that “…the Government is still on course for a charges cap, but it’s just decided to delay things so that insurance companies can meet the capacity crunch, which is happening from April 2014 onwards.”
Cap or no cap, auto enrolment is already underway with over 2.5 million people having been enrolled into a pension scheme since it began in 2012.
The phased roll-out of the auto enrolment scheme means that a number of small businesses are still not clear on the date by which they must begin enrolling their workforce.
If you would like guidance on your pension responsibilities or support to set up an appropriate scheme, we can assist you in making this important choice for your business.