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Automatic Enrolment For UK Home Help/Domestic Staff

The automatic enrolment legislation requires UK employers from all sectors, including those who have household employees such as nannies and personal carers, to enrol all their eligible employees into a workplace pension scheme. Find out more below.

Auto Enrolment For Home Help/Domestic Staff
Workplace Pensions For Personal Carers, Nannies, Cleaners & Other Domestic Workers

Are you aware of new legislation that require all UK employers from all sectors, including those who have hired help at home, to enrol their eligible employee(s) into a workplace pension scheme by a certain date? Failure to comply could result in being penalised with the worse case scenario being thousands of pounds in accrued fines and even imprisonment.

There are many pension schemes out there that will charge a sign up fee and/or an on-going cost, which will place further financial stress on the employer so it is therefore well worth your while to do your research properly. At Smart Pension, we recognise the financial burden this will be for thousands of employers which is why we don't charge any set up fees nor do we have any on-going charges for employers who sign up to our standard plan.

auto enrolment for nannies

So whether you hire a full time nanny to look after your two year old whilst you are at work, a personal carer at home to help take care of you and your medical needs or a weekly cleaner who takes care of the day to day chores so you don't have to, you need to ensure that you are compliant by the staging date set out by the government. If you're employing domestic staff for the first time on or after 1st October 2017, you will need to provide your first member of staff with a workplace pension on the day they start work. This date is known as an employer's 'duties start date'.

If the words 'staging date' or 'duties start date' have set alarm bells ringing and you're wondering where to even start then you've come to the right place. Agencies have warned that the stress of employers having to set up and manage a pension scheme for their employee on top of all the financial obligations is expected to drive many employers to 'fly under the radar' and resort to paying cash in hand which is especially risky. With Smart Pension, you can sign up and be compliant within a matter of minutes. It needn't be stressful. In fact, at Smart Pension, it's extremely easy.

Other Key Features Of Smart Pension Include:

Online Management:

Smart Pension is web based and self serviced so you can manage it whenever, wherever. Once you are signed up, setting up your workplace pension is as easy as one, two, three. We'll ensure that your eligible employee(s) receive the legal required minimum contribution to their pension from you, the employer.

Easy To Make Changes:

Enter your employee details once and we remember it for the next payroll run. Should there be any changes, such as a change of salary for your children’s nanny or the hire of a personal carer to help you with your everyday needs - you can update these details within a few clicks, which is particularly helpful especially if you've got enough on your plate.

Instant Direct Debit:

Our one-step process direct debit is hassle-free and whereby your bank account is verified and set up within a matter of seconds.

Automatic And Compulsory Employee Documentation:

Compulsory documentation for your employees is automatically generated so that’s one big thing to check off your list. Educational documents are sent out prior to the crucial 'staging date' to inform your employee(s) about the impending changes ahead, but also after your employee(s) is/are signed up for their pension. We do all the legwork so you can sit back and relax*.

Employee Self Administration:

Your employee(s) also have the ability to manage their opt in / opt out status, select their level of their own employee contribution as well as make sure that their details are always up to date, all without you needing to get involved, giving you more time to take care of more important things in life.

For further information and more details about the unique features of Smart Pension and how it could work for your household/domestic employees, you should have a look at the Why Choose Smart Pension? page. Or alternatively, you can book an appointment to speak to one of our experienced team members via our booking form.

Smart Pension & Netmums.com Talk Auto Enrolment On Sky News - Interview

It is clear that those who employ household help such as nannies, who don't consider themselves to be employers or businesses,are still not fully aware that they will need to enrol them onto a pension scheme and start making contributions, adding to the cost of home child care which is at an all time high. According to the Financial Times, the potential cost of providing a pension for a nanny in London could amount up to an additional £500 a year. For many families up and down the country, this is going to cause an extra strain on the purse strings and make managing the monthly out-goings a more challenging task. Nevertheless, nannies and other employees who work in the household have employee rights too and are therefore entitled to save towards their future retirement just like everyone else.

Managing Director of Smart Pension, Will Wynne, discusses auto enrolment on Sky News alongside Anne-Marie O'Leary, editor-in-chief of online parenting site, netmums.com, and in particular, how it will affect employers who hire nannies and don't consider themselves to be employers.

Smart Pension Automatic Enrolment Case Study

Jacqui Avery of Dementia Friendly Parishes, a company committed to improving and changing the lives of people with dementia and their carers, initially chose Smart Pension over other workplace pension providers as it was free for employers with no set-up fees, ongoing fees or hidden charges, plus its platform was fast and easy to use. When compared to the competition, Mrs Avery felt that Smart Pension was the more affordable option for her employees and that the platform offered a much quicker set-up.

Her main concern with the new auto enrolment legislation was ensuring that her company was compliant but not being computer literate, she encountered a few issues at the start such as "understanding the type of file to download", linking up her company payroll and "uploading contributions". However, with the help of the Smart Pension support team, they took the pressure off of Mrs Avery and made "it a little less stressful", helping her quickly be on her way to becoming compliant.

Mrs Avery said "Frankly you appear to have thought of the process through the eyes of a layman and have certainly made it easier." and would recommend Smart Pension to other employers going through automatic enrolment.

More Information

* Please note that you are responsible for meeting your deadlines, not us. We cannot accept any responsibility if you miss your deadline.

Smart Pension is designed specifically for auto enrolment but is tailored to meet your household/domestic business needs.

The Smart Pension automatic enrolment workplace pension platform is also well suited to the needs of other sectors, particularly those with a higher turnover, such as hospitality businesses, construction businesses, employment/recruitment agencies, call centres, farm owners, and retailers.

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