Saving for the Future 2024-02-05
2024-02-05
TAGS
Response quality
Questions & Answers
Q1
Direct Answer
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Context
The MP wants to know what steps the Department is taking to help people save for their future.
What steps his Department is taking to help people save for the future.
Automatic enrolment has succeeded in transforming pension savings, with more than 11 million employees being automatically enrolled in a workplace pension since 2012 and an additional £29 billion in real terms saved into marketplace pensions in 2022 compared with 2012.
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Assessment & feedback
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Q2
Direct Answer
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Context
The MP inquires about the rate of take-up for pensions under automatic enrolment and provisions to help low-income individuals save.
What is the rate of take-up of these pensions and what provisions are the Government putting in place to help those on low wages build up a pension pot to help provide a decent income in retirement?
The increase in take-up since 2012 has been extraordinary, particularly among women, for whom the rate was 40% in 2012 and is now 86% and in line with men. My hon. Friend will know about the 2017 review that we conducted on auto-enrolment. As and when we bring in those changes, that will mean 3 million more people auto-enrolled with £2 billion of additional savings each year.
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Assessment & feedback
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Q3
Direct Answer
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Context
The MP highlights the importance of financial inclusion following the pandemic, asking about measures to enhance financial stability for constituents.
What are the Government doing to increase the financial resilience of our constituents and make them best placed to cope should such an unforeseen event happen again?
May I first recognise the fantastic work my hon. Friend does on financial resilience? The Government have, through very difficult times, come forward with £104 billion of cost of living payments between 2022 and 2025. I would point my hon. Friend to one particular scheme: the help to save scheme encourages low-income households to save and we have recently extended that by 18 months, until April 2025.
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Assessment & feedback
Response accuracy
Q4
Partial Answer
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Context
The MP acknowledges the success of auto-enrolment but questions whether the current minimum contribution level is sufficient.
Does the Secretary of State recognise that that minimum level of contribution will need to be increased?
The contribution rates of the employer and employee are a very important matter, and we keep both under review.
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Assessment & feedback
The specific need for increasing contributions was not directly addressed.
Keep Under Review
Response accuracy
Q5
Partial Answer
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Context
The MP asks how the government could encourage young individuals to follow advice on financial planning, reflecting on personal experiences.
What would the Secretary of State say to encourage the young people of today to take their mother's advice on opening bank and pension accounts and planning for the future?
I think the response to that is, always take your mother's advice. I always did—and look where it got me. At the age of 16, I would have thought the hon. Gentleman would have been saving into a piggy bank, putting his little pennies in a porcelain pig. I direct him to the gov.uk website, where there is a plethora of information for young people and those of all ages about saving and what the Government are doing to assist.
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Assessment & feedback
The advice given does not provide specific guidance on encouraging financial planning among youth.
Direct Him To Gov.Uk Website
Response accuracy
Q6
Partial Answer
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Context
The MP highlights the issue of women being disproportionately excluded from pension schemes and inquires about updates on implementing changes.
Can the Secretary of State shed light on when these vital changes will take place?
The hon. Lady draws attention to savings for women. I have already stated that 40% of women invested in workplace pensions back in 2012, and that has skyrocketed to 86% today. There are now 2.3 million employers providing pensions through the auto-enrolment route, and there is £29 billion more in workplace pensions in 2024 than was the case in 2012. The hon. Lady refers, I think, to the 2017 review, which I have already referred to. That is currently under review.
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Assessment & feedback
The specific timing of implementing changes was not provided.
Currently Under Review
Response accuracy