Government freeze to automatic enrolment trigger is a missed opportunity to give more workers pensions, says TUC

15 December 2015

Commenting on the decision announced by the government today (Tuesday) to freeze the automatic enrolment earnings trigger for workplace pensions, TUC General Secretary Frances O’Grady said:

“By freezing the earnings trigger for automatic enrolment, the government has missed the opportunity to bring millions of low paid and part-time workers into the pensions system.

“The government’s own figures show that women make up just 38 per cent of those eligible for auto-enrolment under its plans, leaving millions missing out on employer contributions to workplace schemes.

“We know from the success of automatic enrolment that relying on these groups to voluntarily opt-in to pension saving is a very ineffective way of reaching more workers.

“Without action, we risk leaving lower earners without the vital benefits provided by regular pension savings.”

NOTES TO EDITORS:

- The announcement was made today by the Department for Work and Pensions. More details can be found in the DWP publication Review of the earnings trigger and qualifying earnings band for 2016/17. The 38% figure for the number of women eligible for auto-enrolment comes from the publication: www.gov.uk/government/uploads/system/uploads/attachment_data/file/484972/review-of-ae-earnings-trigger-2016-2017.pdf

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