PAYROLL NEWS
Payroll news
DWP releases a consultation diving into small pots pensions WITH THE success of automatic enrolment comes a side effect which could cause issues further down the line. Many pension savers still move jobs frequently and leave behind a trail of small pension savings accounts, known as deferred small pots. With pensions dashboards on the horizon, despite delays, awareness of these pots is due to grow. However, this still leaves the issue of what to do with them once savers are aware of them. The Department for Work and Pensions (DWP) is looking for views on different solutions to this problem. The consultation proposes different methods of automatic consolidation, each with various pro and cons. Once a process for consolidating pots has been agreed, there’s the secondary issue of the pots that have already built up. The DWP will be assessing the solutions against five main criteria: l delivery of overall net benefits for members through improved value for money outcomes, achieving a meaningful impact on the number of existing, and flow of, new deferred pots l complements member engagement on their savings journey / retirement planning l supports a competitive, sustainable and more efficient workplace pensions market (trust and contract-based schemes) l minimising complexity and administrative burdens for employers l commands confidence in the system for savers and taxpayers. The CIPP is involved with the Small Pots Cross-Industry Co-ordination Group, mentioned within the document, and has been involved in getting the proposals to this stage. It can be very technical in parts, but well worth diving into if you’re interested in the pensions space and how we can shape the industry to benefit all pension savers. The consultation can be accessed here: http://ow.ly/lHqA50MP4nu.
Planned ‘fire and rehire’ statutory code A NEW consultation has been released by the Department for Business, Energy and Industrial Strategy (BEIS), presenting a draft code of practice for employers seeking to change employment terms and conditions. This seeks to act against employers who use dismissal to pressure employees into taking new, less favourable, terms of employment. In the press release, it indicated that the P&O Ferries situation, last year, was a contributing factor in the introduction of measures to tackle the issue. The code will give courts and employment tribunals the ability to apply a 25% uplift to employee compensation if their employer didn’t comply with the statutory requirements. The consultation is open until 18 April 2023. If you have any information to provide to BEIS, we strongly advise you to read through the consultation document and respond where possible. This again, is another place we can make our industry’s voice heard and improve the rights of workers across the UK. The consultation is located here: http:// ow.ly/1LJA50MTTAh and the press release can be found here: http://ow.ly/VkV950MP4ts.
Rishi’s cabinet reshuffle creates four new departments ON 7 February 2023, the UK prime minister, Rishi Sunak, announced the creation of four new departments. This means the end of BEIS. The new departments and ministers are as follows: l Department for Energy, Security and Net Zero – Grant Shapps l Department for Science, Innovation and Technology – Michelle Donelan
l Department for Business and Trade – Kemi Badenoch l Department for Culture, Media and Sport – Lucy Frazer. With parliamentary under-secretaries also being reshuffled in the wake of BEIS’s disbanding, it remains to be seen how this will impact us in the long run. The Department for Business and Trade (DBT) is the most likely, and logical, department to take over duties pertaining to payroll professionals. The CIPP will be keen to see how this impacts the current consultations open with BEIS, holiday pay guidance and statutory payment guidance that sit in BEIS’s remit.
Diary dates
5 March
Last day of tax month 11
6 March
First day of tax month 12
Last day for submitting a real time information employer payment summary to apply to tax month 11 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
19 March (this is a weekend date)
22 March
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
5 April 6 April
Last day of tax month 12
First day of tax month 1 2023/24
| Professional in Payroll, Pensions and Reward | March 2023 | Issue 88 8
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