10 September 2014
The NHBF is this month launching a pension scheme specifically to help salon owners meet their obligations under pensions auto-enrolment, the change to pension provision set to arrive within the industry over the next two years, and which could cost salons up to £50,000 if they get it wrong.
The NHBF pension offers guaranteed acceptance to Federation members, free software and a discounted introductory fee until August next year.
With NHBF research identifying that many salons are still unaware of auto-enrolment, the Federation is from next month launching a national programme of awareness-raising events and a series of webinars, open to members and non-members alike.
Auto-enrolment is the change to pension provision that means employers now have a statutory duty automatically to enrol eligible workers into a work-based pension – and make an employer contribution towards it.
It has been in force in October 2012 but because it has been rolled out in stages, with the largest employers going first, most small salons will not be needing to auto-enrol their staff until 2015 or even 2017.
But the Pensions Regulator has repeatedly warned the industry that choosing a pension scheme, putting in appropriate payroll processes, assessing which employees are eligible and communicating the change to staff can all take time, often as much as a year.
The fact hairdressing is a low-wage industry with a lot of casual working and self-employment is likely to make administering auto-enrolment even more complicated, it has warned.
To that end, the NHBF’s pension has been launched as a key tool for the industry to ensure it becomes compliant with the new regime.
The first event is being held on 13 October at Edgbaston Cricket Ground in the West Midlands, with further events taking place around the country until next June. The first webinar will be on 23 November.
Both will explain how the NHBF scheme works, what auto-enrolment will mean for salon owners and what they need to be doing to prepare for its arrival.
NHBF chief executive Hilary Hall said:
Historically, offering a pension within hairdressing has been the exception rather than the norm. That’s now all changing, and fast. Salons need to recognise they are going to be subject to tough new responsibilities, or risk being heavily fined.
The NHBF pension will not be the only solution out there but, because it is specifically designed for our industry, we think it is going to become an important way in which salons meet their responsibilities under auto-enrolment.
I urge all salon owners to watch out for our seminars coming to their local region and sign up as soon as they can.”
Anyone interested in attending can either book online at www.nhf.info or through the NHBF’s new pensions website, www.nhfpensions.co.uk, or by calling 01234 831965.
The webinar will be able to be viewed online at nhf.info.
Events are being held at:
- 13 October – Edgbaston Cricket Ground
- 20 October – Ramside Hall, Durham
- 10 November – Towergate Insurance, Kempton House, Taunton
- 17 November – Towergate Insurance, Avebury Boulevard, Milton Keynes
- 16 March – Towergate Insurance, Leadenhall Street, London
- 11 May – Towergate Insurance, Castle Marina Road, Nottingham
- 8 June – Towergate Insurance, St Vincent Street, Glasgow