Decision on auto-enrolment earnings trigger freeze looms

A review on whether the link between the auto enrolment earnings trigger and income tax should be axed next year moves closer to a conclusion next week. Possible changes to the system were set out in October by the Department for Work and Pensions, which called for views on the matter. The Government is reviewing the current thresholds to prepare for next year and there is under a week to comment on the consultation, which ends on 25 November.The DWP report stated: "We would like to test whether maintaining the alignment between the earnings trigger and the income tax threshold remains right in the light of proposed increases to the threshold and suppressed earnings growth." The four options outlined in the consultation were: The DWP report stated: "If changes are made, these will come into effect on 6 April 2015."However, in order for as much of the process as possible to be automated, software providers will need advance notice of the Government's intentions in relation to the new thresholds."We therefore propose to respond to this consultation in December, around the time of the Autumn Statement. As with previous years, decisions about the appropriateness of consulting on the proposed thresholds in future will be made each year, on merit." The DWP is asking for views on the four options and wants to know if there any other factors that should be taken into account in the review.It also asked if there any other options it should be considering and whether any of the ideas would have a disproportionate or unreasonable impact upon any particular sectors of the population. Click HERE to read the consultation. E-mail responses to: This email address is being protected from spambots. You need JavaScript enabled to view it. Or by post to:Alison EvansDepartment for Work and PensionsAutomatic Enrolment Programme1st FloorCaxton HouseLondon SW1H 9NA

Decision on auto-enrolment earnings trigger freeze looms

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