SMEs say auto-enrolment will damage growth

Automatic enrolment (AE) is likely to prove challenging for the UK’s smallest businesses.

Some of the smallest companies claim that they will be unable to offer staff pay rises as a result and some fear they will go out of business, according to Enrolsme.

A poll of 200 employers and 50 charities in businesses employing 1-50 people with no pension in place  found that over a third (37%)  said pay rises or bonuses would  be affected as  result of the new requirements, and a quarter (26%) said they would not be able to take on more staff.

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