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Auto Enrolment for Care Workers

17 March 2022

Automatic enrolment for workplace pensions has helped many employees make provision for their retirement, with employers and government also contributing to make a larger pension pot.

Automatic enrolment for workplace pensions represents a significant step forward in helping employees across various sectors, including care workers, secure their retirement. By mandating contributions from employers, employees, and the government, this scheme ensures a more substantial pension pot for the future.

Understanding the Basics of Automatic Enrolment:

Under current legislation, employers are required to automatically enrol workers into a workplace pension if they:

  • Are aged between 22 and the State Pension Age,
  • Earn more than the £10,000 minimum threshold, established since 6 April 2014,
  • Work in the UK, and
  • Are not already enrolled in a qualifying workplace pension scheme.

Employees have the option to opt out, but the advantages of staying enrolled are considerable, ensuring a more secure financial future.

Specifics for Employing Care Workers:

If you employ a care worker, such as a personal assistant for care and support, the law regards you as an employer. This status holds regardless of whether you finance the employment with your funds or through direct payments/personal budgets from local authorities or the NHS.

However, if a care worker is employed through an agency that handles their National Insurance contributions, the agency then assumes responsibility for pension auto-enrolment.

Why This Matters:

For employers, this means acknowledging the importance of contributing to your care worker’s pension. Not only does this enhance their financial security, but it also fosters a positive employment relationship and contributes to a stable care sector.

Next Steps:

Review your current pension arrangements for any employed care workers to ensure compliance with the law. If you’re uncertain about your obligations or how to proceed, seeking professional advice can clarify these responsibilities.

At ECOVIS, we’re committed to helping employers navigate the complexities of pension auto-enrolment. Whether you’re new to employing personal care assistants or looking to verify your compliance, our experts are here to support you every step of the way. Get in touch to learn more.

Source: Pensions Regulator Tue, 15 Mar 2022 00:00:00 +0100

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