The Forum of Private Business (FPB), a support organisation for small businesses, is warning that recent changes to pensions and retirement rules will hamper job creation among smaller firms.
The FPB is arguing that the government’s decision to force companies into providing pensions for employees and remove the Default Retirement Age (DRA) will deal a double blow to smaller employers.
It believes that making businesses of all sizes provide pension provisions from 2012 – even if they only employ a single person – will add cost and create extra administrative burdens when small businesses can least afford it.
The move is likely to lead to a drop in the number of permanent jobs being provided by small to medium-sized enterprises (SMEs) and an increase in the use of temporary staff and self-employed labour.
Additionally, the forum is arguing that the government’s intention to remove an employer’s ability to retire workers as part of its abolition of the DRA will act as an extra disincentive for small employers to recruit.