Pension Auto-enrolment

Work and Pensions – in the House of Commons on 6th June 2022.

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Photo of David Johnston David Johnston Conservative, Wantage

How many people have been auto-enrolled in workplace pensions in Wantage constituency since 2012.

Photo of Felicity Buchan Felicity Buchan Conservative, Kensington

How many people have been auto-enrolled in workplace pensions in Kensington constituency since 2012.

Photo of Guy Opperman Guy Opperman The Parliamentary Under-Secretary of State for Work and Pensions

Since 2012, in the Wantage constituency, 14,000 local men and women have been automatically enrolled into a workplace pension. We thank the 2,410 local employers who are helping these employees to save from 8% of their earnings.

Photo of David Johnston David Johnston Conservative, Wantage

Auto-enrolment has been one of the most successful Government policies for the workplace in decades, but my hon. Friend will know that contributions are often not yet at the levels needed for people to have a secure retirement. What steps is he taking to encourage an increase in contribution levels?

Photo of Guy Opperman Guy Opperman The Parliamentary Under-Secretary of State for Work and Pensions

We keep all policies under review, and auto-enrolment got to 8% only in 2019. We will proceed with the 2017 auto-enrolment review by lowering the eligibility age and making it from the first £1 earned in due course. We will also look at all matters in terms of contribution rates on a longer-term basis as time moves on.

Photo of Felicity Buchan Felicity Buchan Conservative, Kensington

I understand that 36,000 people in Kensington have been signed up through auto-enrolment, which is great news. What can my hon. Friend do to ensure that even more people in Kensington are signed up?

Photo of Guy Opperman Guy Opperman The Parliamentary Under-Secretary of State for Work and Pensions

Where Kensington leads, the rest of the country follows. There is no doubt that 36,000 is a phenomenal number of employees who are saving the 8% through auto-enrolment. My hon. Friend will be aware that, in her community and in this country, less than 40% of women were saving in a workplace pension prior to 2012, and it is now 86%. Less than 24% of young people were saving in a workplace pension, and it is now 84%. This is a game-changing policy developed under successive Governments but pioneered by this Conservative Government.