Commons Sense

House of Commons · Written Ministerial Statement

Automatic Enrolment Earnings Trigger and Qualifying Earnings Band Review 2020/21

13 February 2020 · Department for Work and Pensions

Proposed by Guy Opperman Con Hexham

Benefits & Welfare

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

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At a glance

Key points

  • This statement discusses the annual review of the Automatic Enrolment earnings trigger and qualifying earnings band for the 2020/21 period.
  • The lower limit of the qualifying earnings band will be set at 6,240.
  • The AE earnings trigger will be maintained at 10,000.

Issue summary

This statement discusses the annual review of the Automatic Enrolment (AE) earnings trigger and qualifying earnings band for the 2020/21 period.

Action requested

I intend to lay an Order before Parliament following the February recess to amend the Pensions Act 2008, setting the lower limit of the qualifying earnings band at £6,240, maintaining the AE earnings trigger at £10,000, and keeping the upper limit at £50,000.

Key facts

  • Over 10 million people have been automatically enrolled into workplace pensions.
  • More than 1.6 million employers are meeting their duties under the programme.
  • Working people will save an estimated extra £18.8 billion into workplace pensions over 2019/20.
  • The earnings trigger remains at £10,000 for 2020/21.
  • The lower limit of the qualifying earnings band is set at £6,240 for 2020/21.
  • The upper limit of the qualifying earnings band is maintained at £50,000 for 2020/21.
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