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Chair Comment: Work and Pensions Committee welcomes Royal Assent for legislation on expanding pensions auto-enrolment

19 September 2023

Commenting today on the Pensions (Extension of Automatic Enrolment) (No. 2) Bill receiving Royal Assent, Chair of the Work and Pensions Committee, Rt Hon Sir Stephen Timms MP, said:

“Lowering the age threshold for auto-enrolment and removing the lower earnings limit on pension contributions will make a real difference to young people, part-time workers and workers in the gig economy. We are pleased the Government has listened to the Committee and supported the legislation to implement recommendations that have the potential to make saving the norm and improve retirement outcomes for many.” 

The Bill, introduced as a Private Members Bill by Conservative MP Jonathan Gullis, enacts the recommendations of the Government’s 2017 review of auto-enrolment. The Committee’s Report from September last year on saving for later life called for the recommendations to be implemented.

The review recommended:

  • Lowering the minimum age at which a worker has to be auto-enrolled from 22 to 18; and
  • Removing the lower limit of the ‘qualifying earnings band’ (£6,240 in 2022/23), so that contributions are paid from the first pound of earnings.

Further information

Image credit: UK Parliament/Elspeth Keep