DWP under pressure to remove auto-enrolment for small firms, minister claims

Date: 17th November 2011

The Department for Work and Pensions (DWP) is under pressure from the Treasury to remove enforced auto-enrolment for small businesses, according to a shadow minister.

Labour pensions minister Gregg McClymont told moneymarketing.co.uk that the proposal is made in a report by Dawn Capital chairman Adrian Beecroft for the government on how small businesses can grow further.

While neither the Treasury nor the DWP commented, the news provider understands that while the Treasury is calling for the exemption to be made, the DWP is not so keen.

"The word 'currently' is important. It was used by Work and Pensions spokesman Lord Freud in the final reading of the Pensions Bill to explain the government's plans on whether small firms will still be required to enrol their employees," he explained.

"Apparently, government 'currently' intends this to be the case."

It comes after exchequer secretary David Gauke said that the UK's tax system is too complex and lacks transparency.

Posted by Thomas Fletcher