The Pensions Regulator has produced a report which states: "We now expect that significantly more employers will be subject to automatic enrolment duties than originally anticipated, mainly due to an increase in the number of new companies that have started up, and fewer going out of business than was forecast.
The original figure was 1.3 million and this has now been revised to 1.8 million small and micro companies who will have to take part in auto-enrolment.”
The Pensions Regulator went on to say: "We have revised the staging profile accordingly, so that it reflects the 1.8 million employers we expect to help through the automatic enrolment process from now until 2018."
Some 59% of all employees were now active members of a pension scheme, compared with 47% in 2012.
Improved economy helps staff to save for their future
Secretary of State for Work and Pensions Iain Duncan Smith said: "The growth in the number of businesses expected to help their staff start a pension is further evidence of the success of our economy. The Government's long-term economic plan is giving more people the dignity of a job, the security of a pay cheque, and the chance to save for a decent well-earned retirement.
"More than 50,000 firms are now offering a workplace pension thanks to automatic enrolment, but there is still much to do. That is why we are working hard to ensure small and micro employers have more support to help them through the process."
Have you started the auto-enrolment process?
If you employ one person or more and have not begun the automatic enrolment process for workplace pensions, then please call us on: 01329 559130 or visit our employers page. We can guide you through your obligations and help you reach your staging date on time.