Personal Allowance could increase to £12,500-excluding millions from being auto enrolled into a workplace pension

Date: 10 January 2014 Deputy Prime Minister Nick Clegg has called for an increase in the personal allowance to £10,500 from April 2014, eventually rising to 12,500.

The earnings threshold for auto enrolment is set in line with the personal allowance, meaning everyone earning more than £9,440 a year is currently eligible for auto enrolment.

The personal allowance is currently scheduled to increase to £10,000 but Clegg has called for a further increase to £10,500 starting in April 2014.

Research carried out by Hargreaves Lansdown has estimated that if the personal allowance continues to rise up to £12,500 this could exclude as many as three million people from being eligible to be auto enrolled into their employer’s workplace pension scheme.

For further information about the auto enrolment process and your rights please refer to Usdaw’s detailed guide to auto enrolment and our award winning 3 minute DVD; you can view both here. Usdaw have also produced a straightforward guide about auto enrolment called Roadmap for Auto-enrolment which you can download here.



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