Commons Sense

House of Commons · Ministers' Questions

Saving for the Future

Monday 5 February 2024 · 6 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 3 Partly answered 2 Not answered 0

Key points

  • Automatic enrolment has led to more than 11 million employees being enrolled in workplace pensions since 2012.
  • The take-up rate for pensions has increased significantly, from 40% in 2012 to 86% for women today.
  • The Government have provided 104 billion in cost of living payments between 2022 and 2025 to enhance financial resilience.

Topics (select to filter)

Questions & Answers

Q1 James Sunderland
Benefits & Welfare
Context

The MP wants to know what steps the Department is taking to help people save for their future.

Question

What steps his Department is taking to help people save for the future.

Answer from Mel Stride

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.

Answered
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Q2 Flick Drummond Con
Benefits & Welfare
Context

The MP inquires about the rate of take-up for pensions under automatic enrolment and provisions to help low-income individuals save.

Question

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?

Answer from Mel Stride

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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Q3 Craig Tracey Con
Economy Benefits & Welfare
Context

The MP highlights the importance of financial inclusion following the pandemic, asking about measures to enhance financial stability for constituents.

Question

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?

Answer from Mel Stride

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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Q4 Stephen Timms Lab East Ham
Employment
Context

The MP acknowledges the success of auto-enrolment but questions whether the current minimum contribution level is sufficient.

Question

Does the Secretary of State recognise that that minimum level of contribution will need to be increased?

Answer from Mel Stride

The contribution rates of the employer and employee are a very important matter, and we keep both under review.

Partly answered

Not addressed: The specific need for increasing contributions was not directly addressed.

How: Keep Under Review

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Q5 Jim Shannon DUP Strangford
Economy
Context

The MP asks how the government could encourage young individuals to follow advice on financial planning, reflecting on personal experiences.

Question

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?

Answer from Mel Stride

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.

Not addressed: The advice given does not provide specific guidance on encouraging financial planning among youth.

How: Direct Him To Gov.Uk Website

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Q6 Gill Furniss Lab Sheffield Brightside and Hillsborough
Taxation Employment
Context

The MP highlights the issue of women being disproportionately excluded from pension schemes and inquires about updates on implementing changes.

Question

Can the Secretary of State shed light on when these vital changes will take place?

Answer from Mel Stride

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.

Partly answered

Not addressed: The specific timing of implementing changes was not provided.

How: Currently Under Review

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