Government back proposals to expand scope of auto enrolment

The Government has confirmed it will back a Private Members Bill aiming to expand the scope of automatic enrolment. 

The Bill proposes abolishing the Lower Earnings Limit for contributions and reducing the age for being automatically enrolled from 22 to 18.

The DWP press release states that lowering the age at which workers need to be automatically enrolled will make saving the norm for young adults and able them to save from the start of their working lives. 

It also states that removing the lower earnings limit will help low earners and those with multiple jobs.   

Minister for Pensions, Laura Trott, said:

“We know that these widely supported measures will make a meaningful difference to people’s pension saving over the years ahead.

Doing this will see the government deliver on our commitment to help grow the economy and support the hard-working people of this country, particularly groups such as women, young people and lower earners who have historically found it harder to save for retirement.”

The press release points out that the provisions in this Bill will not result in any immediate change but will give the Secretary of State powers to amend the age limit and lower qualifying earnings limit for Automatic Enrolment. Any changes will be subject consultation before implementation.

This information is correct as of 14/04/2023.

Please note: A pension is a long term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.