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.

Description

The Pensions (Extension of Automatic Enrolment) (No. 2) Bill seeks to amend the Pensions Act 2008. Key changes include:

• Lowering the minimum age for automatic enrolment: The Secretary of State will be empowered to reduce the minimum age for automatic enrolment below the current level via regulations.
• Lowering or removing the minimum earnings threshold: The Secretary of State can reduce or eliminate the minimum earnings threshold for automatic enrolment, potentially including those currently exempt due to low earnings. This includes repealing relevant sections of the 2008 Act related to workers without qualifying earnings.
• Consultation and Parliamentary oversight: Before implementing changes, the Secretary of State must consult relevant parties and submit a report to Parliament on this consultation.

Government Spending

The bill itself doesn't specify government spending figures. However, lowering the minimum age and earnings threshold for automatic enrolment would likely increase government administrative costs and potentially lead to increased contributions (through employer and/or government matching schemes) to the pension scheme in the long run. The exact financial impact will depend on the specific regulations set by the Secretary of State.

Groups Affected

• Young people (under 22): They will potentially be automatically enrolled in a pension scheme, even if they previously were not eligible.
• Low-income earners: They may become eligible for automatic enrolment if the minimum earnings threshold is reduced or removed.
• Employers: They will have additional administrative responsibilities for enrolling and contributing to pensions for a larger workforce.
• Pension providers: They may experience an increase in the number of members and associated administrative tasks.

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