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Pension: Small firms are on 'borrowed time' as defaults rise – are workplace schemes safe?

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“If you are employing staff for the first time, your legal duties for automatic enrolment begin on the day your first member of staff starts work. This is known as your duties start date.”

Unfortunately, owners and employees of small businesses may struggle in the coming months as new data from the Bank of England showed default rates on small business loans rose in the first quarter of 2021.

While it remains to be seen how businesses may cope moving forward, it’s possible that more defaults and failures could occur (especially among smaller firms) as Government support is phased out.

Dr Jackie Mulligan, an expert on the High Streets Task Force and founder of local shopping platform shopappy.com, reflected on this: “It’s extremely worrying that more small businesses are starting to default on their loans and the Government needs to step in urgently to prevent this trend from getting out of control.

READ MORE: Pension warning: Savers urged not to rely on state pensions



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