Non-AE workers continue to outweigh enrolled workers

The number of workers newly auto-enrolled into a workplace pension scheme continues to be outweighed by the number of those not enrolled, according to the latest statistics from The Pensions Regulator (TPR).

Since January 2019, there has been 183,000 newly auto-enrolled workers compared to 258,000 unenrolled workers, which has now reached a total of 9,550,000.

Whilst the number of non-enrolled workers has increasingly outpaced its counterpart - with an average monthly increase of almost 3000 for non-enrolled, compared to just over 2200 for those who are enrolled - it's expected that the total number of enrolled workers will remain higher in total it they continue to grow at the same rates over the next 12 months.

Despite this, the number of non-enrolled workers could reach as much as 9,910,000 by October 2020 if current trends continue.

In the report, TPR stated: “While the information is the actual data received by us, there will be employers that have reached their staging date, who have automatically enrolled their eligible jobholders and who have not yet completed their declaration.

“The figure for eligible jobholders that have been automatically enrolled is therefore likely to be higher than that shown in this report.”

TPR has recently warned employers over auto-enrolment compliance, issuing a £350,000 fine to an unnamed company for failing to comply with its pension duties and is currently prosecuting a nursery for its similar failure to comply.

TPR stepped up its use of AE powers in the first quarter of 2019 by 15 per cent, due to an increasing number of employers reaching their three-year re-enrolment date and who must re-declare compliance to TPR, as well as the continued enforcement activity against employers after the first increase of combined minimum contributions in April 2018 to 5 per cent.

This also follows the recent TPR report showing the number of young people saving into an auto-enrolment workplace has increased from 24 per cent in 2012, to 84 per cent in 2018.

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