Personal carers to start receiving pension contributions

The 100,000 people who currently employ personal carers need to be aware of recent changes that could now make them legally liable to pay pension contributions.

As of June, anyone who hires a personal carer will gradually be required to offer pension contributions under auto-enrolment. For example, if someone pays a personal carer £15,000 a year, they will be required to make contributions of £185 a year, within 2 years of the scheme starting.

Contributions may be covered if a carer is organised through the local authority. However, it is still unclear whether all local authorities will be prepared to take on the extra costs of a pension.

Those who employ gardeners or cleaners will not be affected, unless their employee earns more than £10,000 a year.

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