Commons Sense

House of Commons · Bill Debate

Automatic Enrolment (Amendment) Bill - Clause 1 - Extending automatic enrolment to young adults aged 18 to 21 and removing the lower earnings limit

24 March 2023 · 7 other contributors

Opened by Jonathan Gullis Lab Stoke-on-Trent North

EmploymentBenefits & Welfare

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Jonathan Gullis raised concerns about automatic enrolment (amendment) bill - clause 1 - extending automatic enrolment to young adults aged 18 to 21 and removing the lower earnings limit in the House of Commons. Other MPs contributed to the debate.

Key points

  • The Bill aims to extend automatic enrolment for pensions to individuals aged 18 to 21 and remove the lower earnings limit.
  • Research indicates that around 25% of people in Stoke-on-Trent North are not auto-enrolled into pension schemes.
  • The proposed changes will require employers to contribute from the very first pound earned.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Jonathan Gullis Lab Stoke-on-Trent North

The Bill aims to extend automatic enrolment for pensions to individuals aged 18 to 21, and remove the lower earnings limit. This move would significantly improve saving levels among low and moderate earners, particularly women and part-time workers. Research indicates that around 25% of people in Stoke-on-Trent North are not auto-enrolled into pension schemes, and this Bill seeks to address such gaps by providing more financial security for retirement. The proposed changes will require employers to contribute from the very first pound earned, enhancing the incentive to save. This Bill is a long-term project that has received cross-party support, ensuring stakeholder involvement through consultations.

Other contributors (7)
  • Jonathan Gullis Lab Stoke-on-Trent North

    Highlights the need for extending automatic enrolment to younger workers and removing lower earnings limits. Argues that this will improve financial resilience for retirement, particularly among women and part-time workers.

  • Kieran Mullan Con Bexhill and Battle

    Emphasises the importance of pension saving in light of an ageing population. Supports the Bill as a step forward towards encouraging individual savings to reduce future state support.

  • Peter Gibson Lab Darlington

    Acknowledges initial fears but highlights the success of auto-enrolment in reversing pension saving decline. Argues for extending enrolment to those under 22 and supports its potential as a levelling-up measure.

  • Louie French Con Old Bexley and Sidcup

    Intervenes briefly to support the Bill while also endorsing broader initiatives for pensions advice.

  • Alison McGovern Lab Birkenhead

    Supports the Bill but asks questions about consultation timing, communication strategies with young people, employer feedback, and plans for stakeholder engagement to ensure success.

  • Laura Trott Con Sevenoaks

    The Bill sets out legislative powers to expand automatic enrolment and places a duty on Government to consult on how these changes will be implemented through regulations. The goal is to ensure that the expansion of automatic enrolment is done in the right way for employers, workers, and taxpayers.

  • Jonathan Gullis

    Expressed gratitude towards civil servants in the Department for Work and Pensions, colleagues from both sides of the House, as well as various organisations such as ABI, PLSA, TUC, Onward think tank, Rebecca Harris, Baroness Altmann, and staff members who have supported him throughout the process.

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