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

13 February 2020

Proposing MP
Guy Opperman Con
Hexham
Type
Written Ministerial Statement
Department
Department for Work and Pensions
View on Parliament.uk -->

At a Glance

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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