David Cameron faced accusations during Prime Minister's questions today from a Conservative MP over the negative effect auto-enrolment into pensions will have on small businesses.
Following an announcement by pensions minister Steve Webb last week, from 2012 employers will be compelled to enrol all employees earning over £7,475 per year into an occupational pension scheme, or into NEST if there is no workplace scheme.
Tory MP Sam Gyimah asked the Prime Minister how auto-enrolment would be implemented and said the scheme will be a burden to small businesses.
Cameron gave his full support to auto-enrolment, and added it will be rolled out in stages to soften the blow to SMEs.
Shadow pensions minister Rachel Reeves says: "I am disappointed backbench conservative MPs are already challenging auto-enrolment.
"While I welcome Cameron's endorsement of auto-enrolment I will be watching carefully that this commitment is not watered down.
"Too many people enter retirement without the income they need to live fulfilling lives in their retirement. People working part time and for small businesses are least likely to be saving for retirement so it is critical that they are covered by auto-enrolment."
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