|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: ||2015 (data is from Sept 2014) |
|Category: ||Transformation - see all reports for this category |
|Description: ||The Automatic Enrolment Programme was established to implement the Governments workplace pension reforms. The overarching aim of the reforms is to get more people saving more for their retirement. The 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; to increase the incentive to remain saving in a pension scheme there is a mandatory employer contribution.
2) The National Employment Savings Trust (NEST) - offers low cost pension provision to individuals on low to moderate earnings and their employers. NEST has a public service obligation to accept any employer who wishes to use it to meet their employer duty.
3) An employer compliance regime - run by the Pension Regulator to support these measures.
The implementation period for the Programme is 6 years: employers are being 'staged' by size, starting with the largest, over the period October 2012 to February 2018; and contributions to pension schemes are being 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 the Department expects to see around 9 million people newly saving or saving more into a workplace pension, and an increase in pension saving of around £11 billion a year. |
|DCA (RAG): ||Amber |
|DCA text: ||Implementation has been successful to date. Over 5 million people automatically enrolled by December 2014 with an opt-out rate averaging less than 10 per cent. Rates of on-time compliance remain very high for those employers who have staged so far, and the Department successfully negotiated high staging volumes in Summer 2014. The Programme remains on course to complete implementation to timetable.
The Programmes focus now is to support the circa 1.3 million small and micro employers who begin staging from June 2015. The Department is refining the ways in which it has supported larger employers in order to meet the needs of smaller employers, and to this is:
testing variants of its communications channels to identify the most effective means of engagement and of securing timely compliance;
helping payroll providers, advisers and intermediaries to fully support employers; and
working closely with pension scheme providers and other sectors to manage the capacity required to support the delivery of the programme.
The MPA reviewed the Programme in December 2014 and supported the Departments approach. The current rating balances the good progress so far and the scale of the challenges to come. |
|Start date: ||2007-05-01 |
|End date: ||2018-11-30 |
|Schedule text: ||The Programme went live on time. The delivery model has been designed to manage peaks in volumes and the Department expects to deliver as planned. |
|Baseline: ||£117.50m |
|Forecast: ||£120.21m |
|Variance: ||2.00% |
|Variance text: ||n/a |
|Whole Life Cost: ||£995.40m |
|WLCost text: ||The whole life costs cover the period from 2007-08 when the Programme started through to 2017-18 - the business case period (as per the business case at September 2012). 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 Pension Regulator; the communications costs for raising awareness through a series of campaigns; and the costs associated with running the Programme Management Office. |
|Notes1: || |
|Notes2: || |
|Sourcefile: ||IPA_2015.csv |
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Acknowledgement: GMPP data has been re-used under the Open Government Licence.