Small and micro employers have embraced their auto-enrolment duties, noting the policy is “necessary”, “sensible”, and “easier to implement than first expected”.

According to new research by the Department for Work and Pensions, smaller businesses are now “embracing the pension savings revolution”.

The DWP’s study interviewed employers and workers representing a range of industries, regions and income groups to gauge their experiences of enrolling into a workplace pension. Of its findings, the government department highlighted that employers had a strong sense of responsibility over their workers’ futures.

Employers also noted that cost and time involved in the auto-enrolment process was lower than they had anticipated, with set-up costs being around £500 and most completing the process in two or three days. In addition most employers were aware of the planned increases in the minimum rate to five per cent in 2018 and eight per cent in 2019.

Of the employers who participated in the study, 82 per cent had no workers who had opted out and among those who did have workers opt out, 75 per cent had just one opt-one.

Minister for Pensions and Financial Inclusion Guy Opperman said: “Small businesses are the backbone of our economy and their success is vital to this country. That’s why I am so pleased that so many have embraced the challenge of enrolling their staff into a workplace pension, and are setting them on the road to a financially secure retirement.

“Business owners regularly tell us that staff who feel supported by their employer are engaged and committed. With record employment and a competitive marketplace, there is no better way to demonstrate the value of your employees than by contributing towards their workplace pension.

“So for those business owners yet to enrol their staff, my advice is clear: be aware, be prepared, and use the support available from The Pensions Regulator. Together we can help to get even more of the UK saving.”

In the coming months more than 400,000 newly formed and existing employers are due to enrol their staff into a workplace pension between October 2017 and February 2018.

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