... and child­care costs could rocket by £300

Daily Mail - - News - By Ruth Lythe Money Mail Chief Re­porter

FAM­I­LIES and the el­derly are fac­ing big fines un­less they cough up hun­dreds of pounds ex­tra to pay for pen­sions for nan­nies and car­ers.

Tens of thou­sands of par­ents will see the cost of their child­care rise by as much as £300 a year from next Fri­day, es­ti­mates from re­tire­ment firm Now Pen­sions show.

Mean­while up to 153,000 el­derly, sick and dis­abled peo­ple who em­ploy car­ers will have to hand over around £150 a year ex­tra.

Un­der the Gov­ern­ment’s auto en­rol­ment scheme, any­one em­ploy­ing a worker must pay pen­sion con­tri­bu­tions for them if the worker earns more than £10,000 a year.

Fam­i­lies with do­mes­tic helpers, as well as those who take on car­ers, are classed as em­ploy­ers un­der the rules, which are de­signed to en­cour­age more peo­ple to save for re­tire­ment.

From next Fri­day, the min­i­mum amount fam­i­lies and el­derly, sick and dis­abled peo­ple must pay into an em­ployee’s pen­sion will dou­ble from 1 per cent to 2 per cent of the worker’s salary.

If they fail to make the in­creased pay­ments they face an ini­tial £400 fine – fol­lowed by a daily £50 charge. Coun­cils that pro­vide the care pay­ments are sup­posed to in­crease the sums to cover the ex­tra pen­sion con­tri­bu­tions by law. But char­i­ties have warned that not all will do so.

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