On Monday 22nd June, I asked the Parliamentary Under Secretary of State for Work and Pensions, Justin Tomlinson, about the changes to the law on workplace pensions, namely auto enrolment. These changes will mean that all employers must automatically enrol eligible workers into a pension scheme, and make contributions. You can read the full text of our exchange below.
I am aware that more than 5.2 million workers have been automatically enrolled in a workplace pension by their employer to date. Since the start of automatic enrolment, workplace pension membership in the private sector has risen from 32% in 2012 to 49% in 2014, a very positive start.
I would like to see the number of workers enrolled in a workplace pension increase further to ensure as many people as possible benefit and start saving and growing their savings for retirement.
You may be aware that I am holding a free workplace pensions event in the constituency on Friday 10th July for local employers. I am hosting the event to offer employers help and advice regarding the changes to the law on workplace pensions. The Pensions Regulator will be giving a presentation on auto-enrolment, and NOW, NEST and People’s Pensions will also provide useful guidance as well as answering questions and offering any further advice on Workplace Pension Schemes.
If you would like to attend or know any local businesses that might be interested in attending, please email me at firstname.lastname@example.org or call my constituency office on 01773 744341 for more information and to register your interest in attending.
Nigel Mills MP:
I welcome the Minister to his post. One way of boosting auto-enrolment further would be to ensure that people were more confident when they came to access their savings that they had the full range of choices that the law now allows. What more can the Minister do to encourage pension funds to offer that full range at an affordable and fair price?
Justin Tomlinson, Parliamentary Under Secretary of State for Work and Pensions:
I am encouraged by the fact that 91% of people who have already been auto-enrolled have continued to save, which is a welcome step and above initial expectations. We will continue to work with the Treasury, the Financial Conduct Authority and the Pensions Regulator to ensure that flexibilities, information and charges are all delivering for the consumer.
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