Clause 5 - Earnings trigger for automatic enrolment and re-enrolment

Part of Pensions Bill [Lords] – in a Public Bill Committee at 12:15 pm on 12 July 2011.

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Photo of Rachel Reeves Rachel Reeves Shadow Minister (Work and Pensions) 12:15, 12 July 2011

The Johnson review considered that, but so did the Turner report before it. In fact, Lord Turner was head of the CBI at the time. Those different perspectives—the trade union perspective and the employer’s perspective—were considered in the review, which recommended that automatic enrolment should start at the national insurance limit, not at the PAYE limit. Does the Minister think that Lord Turner got that wrong?

In addition, people may enrol at a lower earnings level, even if they are not automatically enrolled. Will that make a mockery of the system?