The Pensions Regulator (TPR) has emphasised that it will take action to protect savers where needed, revealing that it saw a roughly one third (30 per cent) overall increase in the use of its auto-enrolment powers during the six months to December 2022.

TPR’s latest Compliance and Enforcement Bulletin showed that between July and December 2022, the regulator issued a total of 28,027 compliance notices, compared to 20,382 in H1 2022.

This was alongside 17,962 unpaid contribution notices, compared to 13,604 in 2021, 18,897 fixed penalty notices, up from 15,302 in the previous period, and 7,492 escalating penalty notices, up from 5,918 in the previous period.

However, regulator also revealed that the number of employers due to redeclare their compliance increased by 106 per cent in the second half of 2022 compared with the preceding period, December 2021 to May 2022, suggesting that this trend will continue over the next 12 months.

Commenting on the update, TPR director of automatic enrolment, Mel Charles, said: “We have seen an overall increase of around a third in our use of AE powers during the six months to December 2022, compared to the previous six months.

"This is in line with our expectations, owing to a large wave of small and micro employers who were due to redeclare in that period.

“The majority of employers are doing the right thing for their staff despite challenging economic circumstances. However, for the small minority who fail to comply with their workplace pension duties, this bulletin demonstrates the enforcement action we take, where necessary, to protect savers.

“I’m pleased to see that the volume of fines issued as a percentage of all declarations completed during July to December fell compared to the previous six months, which indicates our compliance work is effective at putting problems right before they escalate.”

The Compliance and Enforcement Bulletin was published alongside a Regulatory Intervention Report (RIR) on the recent prosecution of two former pension scheme trustees for making illegal loans of £236,000 from a company pension scheme to the sponsoring employer.

The report also follows new guidance issued by TPR earlier this month, which looks to remind all trustees of their employer-related investment (ERI) duties, setting out the restrictions and the responsibilities that apply.

TPR director of enforcement, Erica Carroll, highlighted both the case report and the new guidance as a "clear reminder" to all trustees that TPR will prosecute those who ignore the rules around employer-related investments.

“Where we suspect ERI breaches, we investigate fully and persistently, and take firm action against those who flout the rules, no matter the size of the scheme," she added. "I call on all those involved in running pension schemes to therefore ensure they are following our guidance.”

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