The link between the auto enrolment earnings trigger and income tax could be axed next year.

Possible changes to the system were set out today by the Department for Work and Pensions. The Government is reviewing the current thresholds to prepare for next year and has launched a consultation.
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.

The consultation ends on 25 November. Click HERE to read the document. 

E-mail responses to:

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Or by post to:
Alison Evans
Department for Work and Pensions
Automatic Enrolment Programme
1st Floor
Caxton House
London SW1H 9NA