Managers in the automotive industry have overtaken those in the financial services sector to resume their reign as the highest paid managers in the UK (earning on average £46,019), according to new research by pay and benefits specialists, Croner Reward.

Last year was the only time in six years that financial services managers managed to beat automotive industry managers into the top spot. Furthermore, pay in the West Midlands has sped up massively from being the lowest average in 2015 (£35,676) to the highest mover in 2016 (5.1 percent above the national average), with average pay clocking in at £40,345. This is a significant find considering that the overall median basic pay increase for UK managers was 1.8 percent; itself a surprise as the Consumer Price Index was +0.1 percent in November 2015. Junior Managers fared the best with the highest increase of 3.6 percent.

Viv Copeland, Head of Croner Reward, says: “Champagne must be flowing for managers in the automotive industry, as they return to the number one spot on the podium. That being said, our research has shown that – for the past six years – average pay for managers in this industry has been over £40,000. On the opposite end of the grid are managers in the Miscellaneous Metal Goods industry, who in January 2016 were typically receiving £28,225 basic pay (£128 less than they received last year). Overall median basic pay is suffering as a result of a fall in the Consumer Prices Index, which has reduced by 0.4 percent this year. It will be interesting to see, if this improves, how sector pay will differ and if the financial services sector will be able to overtake the automotive sector again next year.”

Employers unprepared for impact of likely changes in pensions tax relief. With just two weeks until the Chancellor’s 2016 Budget statement, research carried out by Jelf Employee Benefits has established that 3 in 4 employers (76 percent) have yet to inform their employees of the possibly seismic changes to the existing system of pensions tax reliefs. In July 2015 George Osborne announced a major review of pensions tax reliefs – and the results of this consultation are expected to be included in the Chancellor’s March Budget speech.

Options on the table include introducing a flat rate of tax relief for all savers, or even a possible removal of initial incentives altogether. Steve Herbert, head of benefits strategy at Jelf Employee Benefits commented: “Although it is as yet unclear as to the final shape of pensions tax reliefs post-Budget, most experts are agreed that higher rate tax relief will probably be removed. Those savers impacted by this change need to be made aware of the issues so that they can make an informed decision and plan effectively, and perhaps bring forward any pension contributions to be invested before any restrictions of tax relief are applied.”

Only 20 percent of the employers surveyed had taken any action to alert their employees to these changes, despite more than 6-in-10 (63 percent) admitting to their awareness of the issue. Herbert continued: “It is a little disappointing that employers have not been more proactive in this respect, and we would encourage more to now alert their employees to this potential change as a matter of real urgency.” The survey also asked employers how long they would need to adapt to any announced change. Almost 7 in 10 employers (69 percent) indicated that they required at least a period of 12 months – including 14 percent who expect a 24 month window, and 10 percent hoping for three years’ notice to plan for any changes.

Herbert concluded: “These findings are crucial. The proposed changes create potential issues for employers as well as savers. Employers potentially have a lot of work in store as they will need to issue and update pension communications, provide guidance to impacted employees, and possibly adapt administration and payroll procedures too. These things can’t be done overnight. The Chancellor needs to recognise that pensions are not a core part of every employer’s day-to-day business activities and they will need time to plan and implement any proposed changes. We would hope that this is recognised in any final proposals come the Budget announcements.”