Workplace Pensions - News

In advance of the Spring Budget, the Department for Work and Pensions (DWP) has confirmed the earnings trigger for auto-enrolment and the earnings bands for Qualifying Earnings will remain unchanged.
 
Based on this, the expected figures from 06/04/2024 are:
 
·       Earnings trigger for auto-enrolment: £10,000 per annum / £833 per month / £192 per week
·       Qualifying earnings band: £6,240 - £50,270 per annum / £520 - £4,189 per month / £120 - £967 per week
 
In addition, in response to the auto-enrolment extension legislation passed in September 2023, that will lead to pension contributions being based on earnings from the first pound earned, the DWP has stated that it wants to find the right implementation approach and will pay close attention to the impact and costs. This includes “giving employers and savers the time to plan for future changes to help minimise any risk of deterring individuals from continuing to save or undermining employer engagement”.
 
This may point to a phased approach to the changes and plenty of notice for both employers and employees.
 
Please don’t hesitate to contact us if you would like further information.

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