Auto-enrolment increases add to soaring SME costs, says Chambers of Commerce

Policy-driven employment costs make up bulk of increase

Alex Levy
clock • 2 min read
David Bharier: Domestic policy-driven costs alone have risen more than 70% in a decade for a typical SME
Image:

David Bharier: Domestic policy-driven costs alone have risen more than 70% in a decade for a typical SME

Increases to auto-enrolment (AE) have contributed to a 70% rise in policy-driven costs for British small and medium-sized enterprises (SMEs) over the past decade, new analysis by the British Chambers of Commerce (BCC) shows.

The business body said a typical mid-sized business now pays £1.98m in costs driven by domestic policy, up £827,000 from £1.16m in 2016, with employment costs like wages, national insurance contrib...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Defined Contribution

SPP calls for greater clarity on scope of VfM framework

SPP calls for greater clarity on scope of VfM framework

SPP supports phased implementation to ease the burden on schemes and providers

Martin Richmond
clock 11 September 2026 • 2 min read
Partner Insight: Re-thinking (private) equities for pension portfolios

Partner Insight: Re-thinking (private) equities for pension portfolios

For DC schemes considering incorporating private equity, accessing the right areas of the market will be key to translating the asset class’s potential into improved outcomes for members.

Nils Rode, Chief Investment Officer, Schroders Capital and James Wall, Head of Defined Contribution Business Development, Schroders
clock 11 September 2026 • 6 min read
People's Pension launches personalised member video welcomes

People's Pension launches personalised member video welcomes

Master trust says move builds on its personalised video strategy

Martin Richmond
clock 09 September 2026 • 1 min read
Trustpilot