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Industry could face massive fines over stakeholder pensions
The leisure industry could be set to pay the government a £340m 'stealth' windfall by failing to provide stakeholder pensions for employees by ever-nearing deadline.
From 8 October, companies employing five or more members of staff who do not have an existing pension scheme face government fines of up to £50,000 if the stakeholder provision is not offered.
Research by Virgin Direct has revealed that some 20 per cent of hotel, leisure and catering businesses surveyed have yet to set up stakeholder pension deals and plan to leave it to the last minute. Furthermore only 59 per cent of companies are aware of the October deadline.
Gordon Maw from Virgin Direct says: With just five weeks to go the clock is ticking and our research shows there are above average numbers of firms in the leisure sector who intend to leave it to the last minute. They may get clobbered with a hefty fine.