13 November 2007
EEF, the manufacturers' organisation has submitted proposals to
the Treasury arguing the case to provide "subsidies" for small
businesses in helping them to contribute to personal accounts for
their employees. EEF have set out the cost over a three-year
transition period.
Department for Work and Pensions (DWP) ministers are thought to
be sympathetic to the idea of compensation to ease the financial
burden of the proposed personal accounts on small businesses, but
the Treasury is not keen to accept it.
The EEF's proposals show that providing financial help to cover
half the employer's contributions with up to 50 members of staff
would cost £221m in the first year, £441m in the second
year and £662m in the third year.
David Yeandle, the EEF's deputy director of employment, said:
"We see the role of smaller employers as being critical for the
successful implementation of personal accounts given that many of
those who are not currently saving for their retirement work in
small businesses."
