Parliamentary Under Secretary of State for Pensions
(): Automatic
enrolment into workplace pensions (AE) has been a great success
to date, with over 10.8 million people having been automatically
enrolled and more than 2.1 million employers meeting their
duties. Since the introduction of AE in 2012, total annual
pension saving by eligible employees has increased by £33 billion
in real terms. The Government remains committed to building on
this achievement and to transforming the retirement prospects for
millions of workers.
The main focus of this year’s annual review of the AE earnings
trigger and lower and upper earnings limits of the qualifying
earnings band (the AE thresholds) has been to ensure the
continued stability of the policy in light of the impact of
Covid-19 and prevailing economic factors. We want to ensure that
our approach continues to enable individuals, for whom it makes
economic sense, to save towards their pensions whilst also
ensuring affordability for employers and taxpayers. The review
has concluded that all AE thresholds for 2023-24 will be
maintained at their 2022-23 levels. This is consistent with our
ambitions to build a stronger, more inclusive savings culture.
The Government are considering what more can be done to enable
people to have greater financial security in retirement.
The 2023-24 Annual Thresholds
The automatic enrolment earnings trigger will remain at £10,000.
The lower earnings limit of the qualifying earnings band will
remain at £6,240.
The upper earnings limit of the qualifying earnings band will
remain at £50,270.
The analysis supporting the review will be published and a copy
placed in the Library of the House. It will be available on the
www.gov.uk(opens in a new
tab) website, following publication.
