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Pensions (Extension of Automatic Enrolment) (No. 2) Bill

24 March 2023

Proposing MP
Jonathan Gullis
N/A
Type
Bill Debate

At a Glance

Issue Summary

The statement discusses the Pensions (Extension of Automatic Enrolment) Bill aimed at extending automatic enrolment to young adults aged 18-21 and removing the lower earnings limit. The statement discusses the Pensions (Extension of Automatic Enrolment) Bill and its aim to extend pension auto-enrolment to younger individuals and part-time workers, addressing current gaps in coverage. The statement discusses the Pensions (Extension of Automatic Enrolment) Bill, which aims to improve retirement outcomes for millions of people in the UK.

Action Requested

The MP supports the bill, which proposes legislative changes to extend automatic pension enrolment to younger workers and remove the earnings threshold, improving financial security for retirement among low earners. The Bill requires consultation before implementation to determine the best approach and timetable.

Key Facts

  • Extends automatic enrolment to young adults aged 18-21.
  • Removes lower earnings limit.
  • 25% of people in Stoke-on-Trent North, Kidsgrove and Talke are not auto-enrolled.
  • Extra third of the part-time workforce will be auto-enrolled.
  • Expected to bring £3.5 billion to local life savings.
  • Helps individuals earn up to £30,000 more by retirement through compound interest.
  • The extension of auto-enrolment aims to cover those under 22 and part-time workers.
  • It has the potential to add trillions of pounds to the nation’s pension pot.
  • The current system disproportionately impacts women and lower earners.
  • More than 10 million people have been automatically enrolled into workplace pensions since reforms began.
  • Over 2 million employers are now contributing to employees' pensions for the first time.
  • £33 billion was saved into workplace pensions in 2021 compared with 2012.
  • The Bill aims to expand automatic enrolment, benefiting women, low earners, and young people.
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