Overview

This bill aims to expand the UK's automatic enrolment pension scheme. It lowers the minimum age for participation to 18 and removes the lower earnings threshold, meaning more people will be automatically enrolled in a workplace pension.

Description

The Pensions (Extension of Automatic Enrolment) Bill amends the Pensions Act 2008. Key changes include:

• Lowering the minimum age: Automatic enrolment will now apply to all workers aged 18 and above, down from the current age of 22.
• Removing the lower earnings threshold: The current lower earnings limit for automatic enrolment will be removed. This means that even those earning below a certain amount will be automatically enrolled.

The bill also makes consequential amendments to related sections of the 2008 Act to reflect these changes. The commencement date will be set by the Secretary of State.

Government Spending

The bill's impact on government spending is not explicitly stated in the provided text. However, expanding automatic enrolment is likely to increase administrative costs for the government and potentially increase the overall cost of the pension scheme in the long run due to a larger number of participants and potentially reduced contributions per participant.

Groups Affected

This bill will affect several groups:

• 18-21 year olds: This age group will now be automatically enrolled in a workplace pension.
• Lower earners: Individuals previously excluded due to their lower earnings will now be included.
• Employers: Employers will have increased administrative responsibilities and potentially increased costs associated with enrolling a larger workforce into the pension scheme.
• Pension providers: Pension providers will likely see an increase in the number of members and therefore potential revenue.

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