Jonathan Gullis MP’s Private Members Bill, backed today by the
government, grants two extensions to Automatic Enrolment –
abolishing the Lower Earnings Limit for contributions and
reducing the age for being automatically enrolled to 18 years
old.
Minister for Pensions, , said:
We know that these widely supported measures will make a
meaningful difference to people’s pension saving over the years
ahead.
Doing this will see the government deliver on our commitment to
help grow the economy and support the hard-working people of this
country, particularly groups such as women, young people and
lower earners who have historically found it harder to save for
retirement.
, said:
Auto-enrolment of pensions will benefit scores of young people in
all four corners of the country, which is why I am delighted that
Minister for Pensions is supportive of the bill.
With all the evidence of the huge positive impact it can have, it
is a no-brainer that we now need to extend auto-enrolment to
those aged 18 and above. I am confident this Bill will make a
huge difference to people from Kidsgrove to Consett.
Lowering the age at which eligible workers must be automatically
enrolled into a pension scheme by their employers from 22 to 18
will make saving the norm for young adults and enable them to
begin to save from the start of their working lives.
In addition, the bill provides for the removal of the Lower
Earnings Limit, supporting those with low earnings and multiple
jobs by ensuring they are saving from the first pound earned.
Following the success of the Automatic Enrolment, the government
intends to continue its work with thousands of employers and
pension providers to further boost the amount of people in a
workplace pension and the amount they save for retirement.
It will also continue its work on empowering savers to know their
pension options by introducing revolutionary products such as
Pensions Dashboards and Mid-life MOTs, providing accessibility
and innovation in how people save for their retirement.
Additional information
- The intention is that the provisions in this Bill will not
result in any immediate change but will give the Secretary of
State powers to amend the age limit and lower qualifying earnings
limit for Automatic Enrolment.
- There will be a statutory requirement to consult and report
on the outcomes to inform the implementation approach and timing,
before using these powers. This will help ensure the strong
consensus that underpins the success of automatic enrolment is
maintained.
