15 April 2021
The Pensions Regulator has updated its Covid-19-related automatic enrolment and DC pension contributions guidance, last amended in October (see Pensions Bulletin 2020/45). This latest update reflects the further extension to the Coronavirus Job Retention Scheme and wider government support announced in March (see Pensions Bulletin 2021/09).
The Scheme was due to finish at the end of April, but in March the Government announced a further extension to the end of September. Whilst the Scheme remains at 80% of salary for hours not worked, the government grant falls to 70% in July and 60% in August and September (all subject to a monthly cap), and employers are expected to make up the difference to 80%. National insurance and pension contributions payable by employers will be based on the total amount received by employees, whether under the Scheme (including the employer top up) or in respect of hours actually worked.
This Pensions Bulletin does not constitute advice, nor should it be taken as an authoritative statement of the law. For further help, please contact David Everett at our London office or the partner who normally advises you.