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| Version 1 | Version 2 |
|---|---|
| Employers of carers or nannies may have to pay pensions | Employers of carers or nannies may have to pay pensions |
| (about 2 hours later) | |
| Up to 100,000 people who employ personal carers are being warned that they may now be legally liable to pay them pension contributions. | Up to 100,000 people who employ personal carers are being warned that they may now be legally liable to pay them pension contributions. |
| From 1 June, small businesses employing up to 30 staff will gradually be obliged to offer their staff pensions, under the auto-enrolment programme. | From 1 June, small businesses employing up to 30 staff will gradually be obliged to offer their staff pensions, under the auto-enrolment programme. |
| That includes people who only employ one person, such as a carer or a nanny. | That includes people who only employ one person, such as a carer or a nanny. |
| The Pensions Regulator, which oversees the programme, says those who do not comply could receive a fine of £400. | The Pensions Regulator, which oversees the programme, says those who do not comply could receive a fine of £400. |
| However, it says it is working with 200 support organisations to make sure people get proper advice. | However, it says it is working with 200 support organisations to make sure people get proper advice. |
| Under auto enrolment, all employees over the age of 22 who earn more than £10,000 a year will now have the right to a workplace pension - unless they decide to opt out. | Under auto enrolment, all employees over the age of 22 who earn more than £10,000 a year will now have the right to a workplace pension - unless they decide to opt out. |
| So far, 5.2 million workers in 45,000 larger companies have joined the scheme. Between now and 2018, an estimated 3.8 million more workers will be enrolled by about 1.3 million employers. | So far, 5.2 million workers in 45,000 larger companies have joined the scheme. Between now and 2018, an estimated 3.8 million more workers will be enrolled by about 1.3 million employers. |
| 'Anxiety' | 'Anxiety' |
| Anyone who took on an employee for the first time after 1 April 2012 will not have to pay pension contributions for another two years. | Anyone who took on an employee for the first time after 1 April 2012 will not have to pay pension contributions for another two years. |
| And many elderly or disabled people - whose carer is organised through the local authority - may find the pension contributions being paid for them. | And many elderly or disabled people - whose carer is organised through the local authority - may find the pension contributions being paid for them. |
| But it is far from clear whether all local authorities will be prepared to take on the extra costs of a pension. | But it is far from clear whether all local authorities will be prepared to take on the extra costs of a pension. |
| All the Department for Work and Pensions will say is that councils "should consider" the costs. | All the Department for Work and Pensions will say is that councils "should consider" the costs. |
| In the meantime, warning letters sent out by the Pensions Regulator have come as a surprise to many people who employ carers. | In the meantime, warning letters sent out by the Pensions Regulator have come as a surprise to many people who employ carers. |
| "It's come out of the blue, and they've just been unaware of it," said Edward Graham, head of advice and information at the charity, Carers UK. | "It's come out of the blue, and they've just been unaware of it," said Edward Graham, head of advice and information at the charity, Carers UK. |
| "It's caused a very high degree of anxiety amongst many people who've received these letters." | "It's caused a very high degree of anxiety amongst many people who've received these letters." |
| Nannies | Nannies |
| Those who employ a carer on a salary of £15,000 a year will have to make pension contributions of £185 a year within two years of the scheme starting. | Those who employ a carer on a salary of £15,000 a year will have to make pension contributions of £185 a year within two years of the scheme starting. |
| The first £5,824 of income is ignored, as is any income over £42,385. | The first £5,824 of income is ignored, as is any income over £42,385. |
| Pension costs for nannies - who can earn much more than carers - might be considerably higher. | Pension costs for nannies - who can earn much more than carers - might be considerably higher. |
| Louise Taylor, a director at agency Kensington Nannies, puts the cost at between £300 and £500 a year, but believes few people will be put off. | Louise Taylor, a director at agency Kensington Nannies, puts the cost at between £300 and £500 a year, but believes few people will be put off. |
| "In the grand scheme of things, another £400 is not going to stop you from hiring a nanny," she told the BBC. | "In the grand scheme of things, another £400 is not going to stop you from hiring a nanny," she told the BBC. |
| However, she said that many people finding nannies on the internet will be unaware that they are liable for pension contributions. | However, she said that many people finding nannies on the internet will be unaware that they are liable for pension contributions. |
| Equally, many nannies will be unaware of their rights. | Equally, many nannies will be unaware of their rights. |
| "A nanny new to Britain will not know she has a right to a pension," she said. | "A nanny new to Britain will not know she has a right to a pension," she said. |
| People who employ cleaners or gardeners will not be affected, unless they pay them more than £10,000 a year. | People who employ cleaners or gardeners will not be affected, unless they pay them more than £10,000 a year. |