Budget 2012: Delay to auto-enrolment staging dates to save government £380 million

The delay to auto-enrolment staging dates for employers with fewer than 50 employees is forecast to save the government £380 million in reduced tax relief on pension contributions by 2017.

According to figures contained in the 2012 Budget report documentation, delaying the staging dates for this group until the next Parliament will save the government £5 million by 2015, £40 million by 2016 and £380 million by 2017.

These figures have been calculated by comparing the tax relief that would have been due under the previous timetable for implementation with the tax relief due under the revised implementation schedule.

But despite being based on an extensive programme of research, the document also stated that there is some uncertainty around the number of individuals from whom additional contributions will be due under the workplace pension reforms.

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