Due to an update of the Pensions Act, it is now a legal requirement for every UK employer to provide a workplace pension for their employees, automatically enroll their workers into that qualifying pension scheme, and contribute to that pension.

Whilst you may not consider yourself to be an ’employer’, this Act does include those that hire nannies for their families. Childcare Help is here to support you through this update and ensure that the process of enrolling your nanny is simple and straightforward.

The Pension Scheme:

If your nanny is under the age of 22 or earns less than £10,000 per year, contribution to a pension is not compulsory. However, your nanny has the right to request that you set up and contribute to a pension and, if they do, you are required to arrange it.

Auto-enrolment into a pension scheme is a compulsory requirement if your nanny:

• Is aged between 22 and State Pension Age
• Earns more than the minimum earnings threshold
• Is entitled to a pension
• Is not already enrolled in a workplace pension scheme

Below are some of the most common questions – but, if you have any other questions, concerns, or issues regarding your nanny’s pension, please don’t hesitate to contact us:

My nanny has only just started working for me – do I need to enroll them already?

If your nanny has been employed by you for less than three months, they will not need to be automatically enrolled into a pension scheme. However, if they request setup/contribution, you must comply.

When can I expect to receive contact from the Pensions Regulator?

Staging dates – i.e. the term for when you will be contacted by the Pensions Regulator – are calculated from your PAYE reference. If you’d like to start planning, you can find out when your staging date will be by entering your PAYE reference on the Pensions Regulator website.

My nanny is only part-time – do I still need to pay into a qualified pension scheme?

Yes. As long as your nanny meets the eligibility criteria highlighted above, you must contribute to a qualified pension scheme. This is also the case for permanent and temporary staff.

What happens if I don’t pay?

Failure to comply will result in a penalty of £400. Plus, you will still be required to make the payments that you’ve missed thus far.

Your trusted pensions support:

Childcare Help UK is supporting many families with the pension scheme set up (including the government-managed, workplace pension NEST), enrolment, and understanding the necessary contributions. Contact us for more information about our auto-enrolment service.