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It seems that government has agreed to relax the rules on auto-enrolling staff into pensions for small and medium-sized employers (SMEs).

Under the changes, employers will now have six weeks to auto-enrol new staff, while the deadline for employers to provide information to individuals on their joining rights has also been extended to six weeks.

According to the CIPD, “the changes follow a report by the Centre for Economics and Business Research, which found that UK businesses are facing £15.4 billion set up costs for auto-enrolment. According to the report, each small business faces set up costs of £8,900 to prepare for the new rules. This figure rises to £12,600 for businesses with 100 employees and £15,600 for companies employing 250 people.”

The Department for Work and Pensions said the changes, which will come into force on 1 April 2014, are intended to ease the administrative pressure on employers.

Source: CIPD /peoplemanagement

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