Today (Wednesday), a report from Onward shows that expanding the auto-enrollment of pensions for every person 18+ and part-time workers will increase the pension savings of British workers by about £ 2.77 trillion. Will
In Parliament this afternoon (Wednesday), Richard Holden, MP for North West Durham, will try to introduce a private members’ bill to increase auto enrollment for pensions to millions of underage and part-time workers.
Since the Conservative-led coalition government introduced automatic pension registration in 2012, the amount of people who save for pensions in addition to their state pensions has increased from 46.5% to 77.6%. Automatic enrollment is currently limited to workers over the age of 22 who earn more than £ 10,000 a year. This does not include many part-time workers who earn less than the threshold and also means that half of the young people who start work or apprenticeship at the age of 18 for the first four years of employment. There is no benefit to auto-enrollment.
Today’s report from Onward highlights the key benefits that the expansion of auto-enrollment will add to the pensions of millions of British workers:
- The changes would mean an increase of £ 2.77 trillion in UK workers’ pensions. This will help provide long-term protection to millions of more pensioners, equalize their retirement, as well as provide patient, long-term funding for investment across the UK.
- Currently, only 57.8% of part-time workers are contributing to pensions, while 86.4% of full-time workers. Women are more likely than men to work part-time and have multiple part-time jobs. This change will dramatically close the gap between men’s and women’s pension savings, helping millions more to have a healthy, happy and secure retirement.
- While part-time workers across the UK will benefit from these changes, circles outside London will benefit the most, with: Mansfield (Nottinghamshire), Workington (Cumbria), Handburn (Lancashire). Along with large parts of the Southwest, the Midlands. , And the north of England will benefit the most.
Examples of how low paid workers will benefit are included in the attached report. This includes a person who is currently working part-time in two jobs, each paying £ 190 / week, and with these changes their lifetime pension is tripled and approximately. 300,000.
Richard Holden is working with MP Honor on these proposals, and today in the House of Commons, private members are trying to introduce a bill to extend these auto-enrollment rights to underage and part-time workers. It already has the support of 11 fellow 2019 intake Conservative MPs (maximum number allowed) to present its ten minute roll bill in Parliament..
Richard Holden, MP for Northwest Durham Said:
“Automatic registration has been one of the biggest hidden successes in the UK over the last decade, But sadly, millions of hardworking British people are not benefiting because they are under 22 or not working long hours. I want to change that.
In 2017, the government said it would consider extending automatic enrollment until the mid-2020s, but to meet those dates, we still need legislation to make it possible and allow business time in these important changes. Permission may be granted in phases. That’s what my bill will do.
“No clear intention to raise the level in the long run can go beyond ensuring that everyone who works hard will see a safer and more secure retirement and I hope that the government will take action now. Will support my campaign. “
Will Tanner, director of Honors UK, said:
“Increasing auto-enrollment for everyone will simultaneously achieve the two main objectives of the government. It will greatly increase the savings rates of some of the least marginalized people in the society and thereby equalize billions of rupees and It will be used to promote development.
“Even better, it’s a simple, well-understood system that already exists, meaning reforms will be uncontroversial and straightforward to achieve. The government has already indicated it will consider it. It’s time to dump her and move on. “