UK businesses are oblivious to the government’s plans for ‘far reaching’ pension reforms, a business lobby group said yesterday.
In a survey by the British Chambers of Commerce (BCC), more than half the businesses questioned were ‘quite or completely’ unaware of the proposals, due to come into force in 2012.
Just 16% of respondents said they were aware of when the reforms are due to come into force, and only 6% said they had received information about the proposals.
The findings were released ahead of the second reading of the Pensions Bill, which took place in the House of Lords on Tuesday.
If the Bill is passed, employers will be forced to automatically enrol their staff into a pension scheme. The BCC said this will add to the employment costs of nearly a million small businesses.
David Frost, director general of the BCC, said the survey had uncovered a ‘very limited’ business awareness of what the proposed reforms actually mean.
“Given the radical changes proposed in the Bill, and an estimated £1.6bn cost to small enterprises, the survey results demonstrate just how important it is to ensure all employers are made fully aware of their new obligations,” he said.
"Not enforcing the changes until 2012 is a smart move as it allows employers some time to phase in the reforms. But as our survey clearly shows, more action is needed to improve employer awareness so businesses are not caught out and left unable to safely plan for their financial future.”
© Crimson Business Ltd. 2008
