The Government has today set out its plans for the introduction of auto-enrolment into workplace pensions, following a review conducted on behalf of the DWP of the measures put forward by the previous Government.

The key recommendations set out in the review, which will be adopted by the Government, are:

  • Alignment of the earnings threshold at which an individual is auto-enrolled with the personal allowance for income tax (£7,475 for 2011)
  • The introduction of a grace period of up to three months before companies are required to auto-enrol workers into a qualifying scheme (although workers will be entitled to opt into the scheme during this three month window)
  • Simplification of the qualifying scheme test for DC schemes
  • Implementation of The National Employment Savings Trust (NEST) as a centralised low-cost pension scheme to which employers may adhere. The Government has confirmed that it will support easy access to NEST for employers
  • There will be no exemption from the requirements for small employers

Further details of the review and its implementation will follow in a full briefing