Auto-enrolment to wipe out firms' red tape savings

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The cost of auto-enrolment into workplace pension schemes will wipe out almost all of the savings made by the government's regulation bonfire.

In a report for the Department of Business, Innovation and Skills (BIS) published yesterday, the government says it will save businesses £3.27bn during 2011 by cutting regulations. However, the audit says auto-enrolment, which will start in summer 2012, will cost employers around £3bn and will "largely offset" the savings made this year. Between 2012 and 2017, all employers must automatically enrol their eligible employees in a qualifying pension scheme. Staff members who are aged over 22, earning more than £7,475 and have worked for their employer for at least three months are eli...

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