Overview

This bill aims to expand the UK's automatic enrolment pension scheme. It proposes lowering the minimum age for automatic enrolment and potentially reducing or eliminating the minimum earnings threshold for participation, thus bringing more people into the pension system.

Description

Age Threshold Reduction

The bill allows the Secretary of State to reduce the minimum age for automatic enrolment into workplace pensions. Currently, this age is 22. This amendment would enable the government to lower this age, making more younger workers eligible for automatic enrolment.

Earnings Threshold Adjustment

The bill grants the Secretary of State the power to either lower the current minimum earnings threshold for automatic enrolment or remove it entirely. This means that more low-earning workers could be automatically enrolled in a pension scheme.

Consultation and Implementation

The bill mandates that the Secretary of State consults with relevant parties before making changes to the age and earnings thresholds. The changes will be implemented through regulations.

Government Spending

The bill itself doesn't directly allocate any specific funding. However, lowering the age and/or earnings threshold for automatic enrolment will likely increase the government's spending on the pension system in the long term, due to the greater number of individuals enrolled and the associated administrative costs. Precise figures are not provided in the bill.

Groups Affected

The bill will primarily affect:

• Young Workers (under 22): They would be automatically enrolled in a pension scheme if the age threshold is lowered.
• Low-Earning Workers: They would be automatically enrolled if the earnings threshold is lowered or removed.
• Employers: They will have increased administrative responsibilities related to enrolling a wider range of employees.
• Pension Providers: They may see an increase in the number of members and associated administration.

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