AE charge cap will not change in "level or scope"

Trustees Agenda posted on 16 November, 2017

Parliamentary Under Secretary of State for Pensions and Financial Inclusion, Guy Opperman, has confirmed that the 0.75% automatic enrolment charge cap will remain unchanged, commenting that the cap was working "broadly as intended".

Tom Selby, Senior Analyst at AJ Bell, commented: "While policymakers have decided the 0.75% price ceiling established in 2015 remains appropriate for now, this may just be a stay of execution... It would certainly be no surprise to see the Government push for a 0.5% charge cap ahead of the scheduled 2022 general election to show that it remains on the side of hard-working savers."