The Financial Conduct Authority (FCA) is providing clarity around
workplace savings schemes so employers and savings providers can
offer them with greater confidence.
To help more employees benefit, the FCA has worked with partners
to provide clarity on the rules around schemes. This includes
setting out how employers can avoid breaching National Minimum
Wage requirements and explaining how providers can meet financial
promotions requirements.
Savings are essential to help consumers manage their financial
lives. But the latest Financial Lives Survey
found that 1 in 10 people have no cash savings, and another fifth
have less than £1000 put aside for a rainy day.
Workplace savings schemes could help millions of consumers to
start saving regularly and build financial resilience, but only
7% of UK employers offer them.
Emad Aladhal, director of retail banking at the FCA said:
“Financial inclusion is a shared effort, which is why we're
teaming up with partners and playing our part to help businesses
understand how to apply the rules for the benefit of
consumers.
“This clarity should give employers greater confidence to offer
savings schemes that can help people navigate their financial
lives”.
, economic secretary to the
Treasury said:
"Payroll savings schemes are a great way for everyday workers to
put a little aside for a rainy day – this statement helps
businesses support their employees to make good financial
decisions.
"I look forward to publishing the Financial Inclusion Strategy
later this year where we will build on this important work."
Oliver Morley, chief executive at the Money and Pensions Service
said:
“As shown by research we recently carried out with Nest Insight
on opt-in and opt-out workplace savings, even a small amount set
aside can provide financial resilience and peace of mind for
employees.
“We will continue to support the FCA in engaging with government
and industry to raise the profile of these schemes with
employers.”
Notes to editors
- Link to statement on workplace
savings schemes
- FCA Strategy 2025 to 2030 - Our strategy 2025 to
2030
- The FCA has worked with HM Treasury, the Money and Pensions
Service (MaPS), Information Commissioners Office (ICO),
Department for Business and Trade (DBT) and the Prudential
Regulation Authority (PRA), who have contributed to this
statement.
- This statement focuses on opt-in workplace savings schemes,
in adherence to existing legislation. We will continue to
work with Government and other stakeholders to look at ways
to further unlock opportunities for consumers to build greater
resilience and navigate their financial lives.
