Mon, 8 Jul 2013

Pensions Regulator costs soar as AE arrives

Automatic enrolment (AE) has pushed spending up at the Pensions Regulator (TPR) by £10.2m in 12 months, according to its accounts.

Costs at TPR grew from £38.6m in 2011/12 to £48.8m in the most recent tax year, which coincided with the start of auto-enrolment for the UK’s largest employers.

The costs related to AE reached £19.7m for the year, a £4.1m rise on the previous year’s figures.

Payroll costs at the regulator also increased by £4.6m to £23m as staff levels rose to help manage the workload produced by the workplace pension reform.

TPR chair, Michael O’Higgins, said: “Automatic enrolment has made a promising start among the largest employers but significant tests lie ahead for the regulator and pensions sector as we look to help prepare medium and small employers.”

The annual accounts also revealed that TPR owed £11m in liabilities, with £68,000 due to government departments – including £16,000 to HMRC – and the regulator earned £20,000 in interest from cash it has stored in the bank.

See also:

• Auto-enrolment will lead to salary cuts
• Pensions Regulator: AE simplification will increase complexity at first
• Low call levels see AE advice line moved in-house