Businesses warn pension offer could cause involvencen as budget rumors grow
A REMORE increase in Desion Pension in the next budget is raising alarm among UK businesses, with almost one in five companies warning they could face debt if contribution rates rise.
A survey of 500 businesses by consultancy Barnett WaddingSham found that 19% of employers believe that the publicity contained in pension documents can put them under financial pressure. More than 30% said they would respond with reemployment or layoffs, making sure they are in the used labor market.
This warning comes as companies continue to receive the cost increases introduced in chancellor Rachel Reeves’ previous budget, including the salary from April 2021 from April 2021 from the National Insurance employer to 15% to 15%.
Martin Willis, a partner at Barnett Waddingsham, warned that even modest increases in pension costs could have serious consequences.
“Even a small increase can disrupt businesses, stall hiring and in some cases threaten livelihoods,” he said. “These findings highlight the many financial firms that are still on the move, boosted by the National Insurance Hike and long-term earnings growth.”
Only 17% of firms surveyed said they could handle the increase with minimal disruption.
While businesses fear more financial pressure, workers are also feeling the pinch, with growing concerns that the minimum 8% contribution to the written register is not enough for a secure retirement.
According to the average life, about 60% of the 60 workers who work by mistake believe that automatic registration alone will provide a comfortable pension, although industry experts are very cautious because of the long way.
The Government revived the Pensions Commission in July to deal with the retirement crisis, but Barnett Waddingsham warned that changes must not come at the cost of business survival.
Willis urged a cautious approach: “We need a balanced, sustainable strategy that strengthens retirement outcomes while protecting the financial continuity of UK employers.”
With the risks of rising car and labor layoffs, any move to increase the employer’s pension obligations is likely to strengthen calls for the implementation of sectoral work, tax incentives or measures to extinguish measures to protect small firms.
Since the budget of the 26 of November, the government is faced with a difficult trade-off: to improve the adequacy of the pension now – or to risk placing many companies under the control of financial companies and causing job losses in the process.
