Menu
17/06/2005
Pensions reforms ‘could affect jobs’
One in five firms would cut jobs if they were forced to pay into pensions for their employees, a survey by the British Chambers of Commerce (BCC) has indicated.
The survey of over 800 businesses also found that more than a third of employers would be forced to meet the cost of compulsory contributions by freezing salary increases, while just under third would have to pass the cost onto customers by raising prices.
BCC Director General David Frost said that forcing employers to pay into pension schemes for their staff would increase the cost of employing someone and force some firms to reduce their workforce in order to meet the cost. Mr Frost said: “At a time when our companies are facing fierce competition from countries such as India and China, compulsory pension contributions are the last thing that UK employers need.”
According to the BCC survey, many firms are already finding pension provision to be cost prohibitive. 57% of those firms surveyed that did not offer a pension contribution for their staff said the major reason was because they could not afford the cost. Three-quarters of these companies employed less than 50 people. One third of firms that did not offer a contribution said that it was because employees would prefer other benefits, such as higher salaries.
The BCC said that the government needed to do more to encourage and enable individuals to take greater responsibility towards saving towards their retirement. The survey found that 55% of schemes that offered an employer contribution of between 5% and 10% had failed to attract more than half of the workforce as members.
Mr Frost said: “The failure of individuals to save is undoubtedly due to a range of factors. However, we now need to see real measures to encourage more people to pay into pensions. This means better government-led information for employees about the benefits of pension saving, greater use of automatic enrolment in company pension schemes and a simpler state pension system that complements individual saving rather than discourages it.”
(KMcA)
The survey of over 800 businesses also found that more than a third of employers would be forced to meet the cost of compulsory contributions by freezing salary increases, while just under third would have to pass the cost onto customers by raising prices.
BCC Director General David Frost said that forcing employers to pay into pension schemes for their staff would increase the cost of employing someone and force some firms to reduce their workforce in order to meet the cost. Mr Frost said: “At a time when our companies are facing fierce competition from countries such as India and China, compulsory pension contributions are the last thing that UK employers need.”
According to the BCC survey, many firms are already finding pension provision to be cost prohibitive. 57% of those firms surveyed that did not offer a pension contribution for their staff said the major reason was because they could not afford the cost. Three-quarters of these companies employed less than 50 people. One third of firms that did not offer a contribution said that it was because employees would prefer other benefits, such as higher salaries.
The BCC said that the government needed to do more to encourage and enable individuals to take greater responsibility towards saving towards their retirement. The survey found that 55% of schemes that offered an employer contribution of between 5% and 10% had failed to attract more than half of the workforce as members.
Mr Frost said: “The failure of individuals to save is undoubtedly due to a range of factors. However, we now need to see real measures to encourage more people to pay into pensions. This means better government-led information for employees about the benefits of pension saving, greater use of automatic enrolment in company pension schemes and a simpler state pension system that complements individual saving rather than discourages it.”
(KMcA)
Related UK National News Stories
Click here for the latest headlines.
07 April 2005
Pension Protection Fund launches
A scheme to protect employees' pension schemes in the event of their employer declaring bankruptcy has been launched.
Pension Protection Fund launches
A scheme to protect employees' pension schemes in the event of their employer declaring bankruptcy has been launched.
27 February 2013
Over A Third Of UK Employees Opting Out Of Pension Scheme
The governments plan to boost workers retirement savings could be undone as research carried out for Aviva reveals more than a third of UK workers would opt out of any pension they are automatically enrolled into.
Over A Third Of UK Employees Opting Out Of Pension Scheme
The governments plan to boost workers retirement savings could be undone as research carried out for Aviva reveals more than a third of UK workers would opt out of any pension they are automatically enrolled into.
20 February 2006
CBI warns employer compulsion is wrong answer
The CBI today has unveiled proposals to help tackle the UK's emerging pensions crisis without compelling business to contribute to staff pension schemes. The employers' organisation argued, in its submission to the Government, that enrolment without compulsion is the best way of increasing pensions saving without undermining existing provision.
CBI warns employer compulsion is wrong answer
The CBI today has unveiled proposals to help tackle the UK's emerging pensions crisis without compelling business to contribute to staff pension schemes. The employers' organisation argued, in its submission to the Government, that enrolment without compulsion is the best way of increasing pensions saving without undermining existing provision.
20 June 2005
Pensions coalition calls for ‘fair deal’
A new coalition is calling on the new government to deliver a new ‘fair deal’ on pensions. Four organisations – the Trades Union Congress (TUC), Age Concern, Help the Aged and consumer watchdog Which? – have joined together to form the People’s Pensions Coalition to campaign for fair pensions reform.
Pensions coalition calls for ‘fair deal’
A new coalition is calling on the new government to deliver a new ‘fair deal’ on pensions. Four organisations – the Trades Union Congress (TUC), Age Concern, Help the Aged and consumer watchdog Which? – have joined together to form the People’s Pensions Coalition to campaign for fair pensions reform.
06 July 2011
Radical Pension Changes To Affect Local Businesses
Private sector employers need to take action now to prepare for a significant overhaul of employee pension provision or face playing catch up on one of the biggest issues to impact the business community for decades, according to a leading UK pension’s expert.
Radical Pension Changes To Affect Local Businesses
Private sector employers need to take action now to prepare for a significant overhaul of employee pension provision or face playing catch up on one of the biggest issues to impact the business community for decades, according to a leading UK pension’s expert.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
