Company pensions reform for savings of Britain's workforce

Company pensions reform could add £2.8trillion to the savings of Britain’s workforce, report claims

  • Think-tank says auto-enrolment rules should be expanded to include all employees over 18
  • Plans would add £2.8 trillion to savings of Britain’s workforce  
  • Onward think-tank claims the move would help part-time workers and young apprentices
  • Tory MP Richard Holden bringing draft legislation today to make reform happen

A massive £2.8trillion would be added to the savings of Britain’s workforce if more people were automatically given company pensions, a report claims today. 

Current ‘auto-enrolment’ rules should be expanded to include all employees over 18 rather than 22 as well as those who earn under £10,000, the Onward think-tank argues. 

It claims the move would help huge numbers of part-time workers and young apprentices. 

Tory MP Richard Holden is bringing draft legislation today to make the reform happen years before the Government plans.

Tory MP Richard Holden (pictured) is bringing draft legislation today to make the reform happen years before the Government plans

He said: ‘Auto-enrolment has been one of the massive hidden triumphs of the last decade in the UK, but sadly millions of hard-working British people aren’t benefitting because they’re under 22 or simply not working enough hours. I want to change that.

‘In 2017 the Government said that it would look at extending auto-enrolment by the mid-2020s but to hit those dates we need legislation now to make it happen and allow business time to phase in these important changes. That’s what my Bill will do.

‘Nothing could show clearer intent towards long-term levelling up than ensuring that everyone who works hard will see a safer and more secure retirement and I hope that the Government backs my campaign for action now.’

Under the policy – introduced in 2012 – to automatically enrol millions of workers into pension schemes run by their employers unless they opt out, the proportion of people with private savings has soared from under half to more than three-quarters.

But it is limited to staff aged 22 and above and who earn more than £10,000 a year, which excludes large numbers of part-time workers as well as young employees who miss out on several years of contributions to their retirement savings.

The Pensions (Extension of Automatic Enrolment) Bill will be set out in the Commons today but is unlikely to become law unless it gains Ministerial support – and the Department for Work and Pensions does not plan to expand automatic enrolment until the mid-2020s.

Under the policy – introduced in 2012 – to automatically enrol millions of workers into pension schemes run by their employers unless they opt out, the proportion of people with private savings has soared from under half to more than three-quarters (stock image)

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