The research says the total cost of set-up will run to £15.4bn, with small businesses facing a set up fee of £8,900, rising to £12,600 for small-medium businesses of 100 employees and £15,600 for companies employing 250 people. Large companies with up to 500 staff are facing an average bill of £22,300 for the one-off costs of implementing auto enrolment. Regional labour costs across the country could see these costs pushed even higher, with the predicted bill for the largest firms in London hitting £28,300, according to the research, commissioned by Creative Auto Enrolment .
The report finds getting ready for auto enrolment could take each business up to 103 man days, with the recurring administration burden taking over 3 days each month for some firms.
Creative Auto Enrolment managing director David White says: “Businesses must start thinking about what they need to do as soon as possible, as they can’t escape auto enrolment. The staging dates for each business are coming, and each and every company, regardless of size, will need to prepare. Our report highlights that the work involved is potentially huge, is specialist and is complex.
“There’s no benefit to businesses delaying getting their auto enrolment strategy in place, but hefty fines will penalise those who don’t meet their responsibilities in time. With the clock ticking, businesses need to start thinking now about what their duties are under the new legislation and who within or outside their business can help them achieve this.”