|Project name: ||Automatic Enrolment Programme - there are 6 reports for this project: 2014, 2015, 2016, 2017, 2018, 2019 |
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|Organisation: ||DWP (D10) - see all reports for this organisation |
|Report year: ||2014 (data is from Sept 2013) |
|Category: ||Transformation - see all reports for this category |
|Description: ||The overarching aim of the Governments workplace pension reforms is to get more people saving more for their retirement. The Automatic Enrolment Programme went live in October 2012, delivering:
1) Automatic enrolment - a new duty on employers to automatically enrol their eligible workers into a qualifying workplace pension scheme, and an incentive to remain saving in a pension scheme through a mandatory employer contribution.
2) The National Employment Savings Trust to offer low cost pension provision to individuals on low to moderate earnings and their employers. NEST must accept any employer who wishes to use it to meet their employer duty.
3) A proportionate compliance regime - run by the Pension Regulator to support these measures.
The implementation period for the Programme runs to 6 years. Employers subject to the new duty are being 'staged' in by size, starting with the largest, over the period October 2012 to February 2018. Contributions to pension schemes will be phased in over time to provide a period of adjustment for employers and individuals, with full contributions being paid from October 2018.
Once fully implemented, between 6 to 9 million people are forecast to be newly saving, or saving more, into a workplace pension. |
|DCA (RAG): ||Amber |
|DCA text: ||The early implementation results are very encouraging. As at March 2014, over three million people had been automatically enrolled in to a workplace pension, with high levels of compliance observed amongst those employers who have staged so far, and opt-out rates amongst employees much lower than expected. As implementation progresses through the staging dates to medium and micro employers, the Programmes challenges may change. To help manage this there is an extensive programme of research and stakeholder engagement, both to track observed behaviours and to gain first-hand knowledge of how the reforms are playing out on the ground. The Amber rating above provides a realistic balance between the success of the Programme to date, the challenges ahead and the risk management in place. |
|Start date: ||2007-05-01 |
|End date: ||2018-10-31 |
|Schedule text: ||The Programme went live on time, the delivery model has been designed to manage peaks in volumes and the implementation timetable has been revised accordingly. |
|Baseline: ||£106.00m |
|Forecast: ||£94.30m |
|Variance: ||-11.04% |
|Variance text: ||The variance in the Programme forecast for 2013/14 reflects a revision to the implementation timetable and the consequent deferral of some set-up costs, and savings achieved through further scrutiny of requirements. |
|Whole Life Cost: ||£995.40m |
|WLCost text: ||The whole life costs cover the period from 2007/08 through to 2017/18. The funding covers: the set up and running costs of NEST (through a repayable loan); the set-up and running costs of the compliance regime within the Pensions Regulator; the communications costs for raising awareness through a series of targeted awareness campaigns; and the costs associated with running the Programme. |
|Notes1: || Automatic Enrolment Programme (originally called Enabling Retirement Savings Programme) |
|Notes2: || |
|Sourcefile: ||IPA_2014.csv |
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Acknowledgement: GMPP data has been re-used under the Open Government Licence.