Work out your client's costs

This page is aimed at giving your clients a better understanding of the costs of setting up automatic enrolment, including setting up a scheme and payroll.

When helping your client with automatic enrolment, you should consider both the work involved in setting up a pension scheme and the ongoing duties they will need to meet.

Some employers can meet their duties with little or no additional cost, particularly if their existing systems already support the requirements. Others may choose to pay for extra support.

Costs will vary depending on your client’s circumstances, including the size of their business or organisation and how they choose to meet their duties.

Set up costs

The time and cost involved in setting up automatic enrolment will depend on factors such as:

how your client runs their payroll
whether they use business advisers
the pension scheme they choose

Some employers complete the set-up themselves. Others choose to use external support.

You should encourage your client to plan ahead. Starting early can help them avoid unnecessary costs and give them time to explore their options.

If your client is considering paid support, they should compare providers to make sure they are getting the right level of service and value for money.

Getting help

Your client can choose to carry out their duties themselves but if your client decides to get help, you should make sure they:

agree what work will be carried out
understand what is included in the service
confirm any fees before committing

Payroll set-up

Your client’s payroll must be able to manage automatic enrolment tasks and provide the required information to the pension scheme provider.

If your client uses a payroll provider, you should check whether automatic enrolment is included in the existing service or charged separately.

If your client manages payroll in-house, check that their software can support automatic enrolment. Some systems already include this, while others may need to be updated.

Pension scheme set-up

Pension schemes vary in how they charge and the level of support they provide.

When helping your client choose a scheme, you should:

check what the provider will charge your client
understand what charges may apply to scheme members
consider what services are included

Some providers may also carry out administrative tasks on your client’s behalf, which can make it easier to manage automatic enrolment over time.

Find out what else to consider when you help clients to choose a pension scheme.

Ongoing costs

After the pension scheme is set up, your client will need to pay contributions into the pension scheme each time they pay their staff.

They may also have ongoing costs for:

payroll
pension scheme administration
professional advice or support

According to recent findings in a 2025 report conducted by the Federation of Small Businesses:

52% of small employers say it costs them under £500 per year for ongoing advice and professional services
24% of small employers say it costs them over £500 per year

Employers with 10 or more members of staff are twice as likely to say that setting up a scheme costs them more than £500 than those with up to nine members of staff.

_{This information comes from ‘Backing the Future: Recognising the importance of small firms in shaping the pensions policy’ (June 2025).}

These costs will vary depending on how your client chooses to meet their duties.

Costs of ongoing duties

Your client can manage ongoing duties themselves or choose to outsource some or all of them.

If they use external support, costs will depend on the services provided and the complexity of their arrangements.

Making contributions

Your client must pay at least the minimum contributions required under automatic enrolment.

The total contribution is made up of employer and staff contributions. The exact amounts will depend on the scheme and how contributions are structured, but your client must make sure they meet the legal minimum.

You can also use our online contributions calculator to help work out the costs for each member of staff.

Remember that even if your client pays or employs someone to set up their automatic enrolment or ongoing duties, your client is ultimately responsible to ensure that all duties are carried out.