Women in Yorkshire and Humberside are more than twice as likely as men to miss out on being automatically put into a workplace pension, according to new analysis published by the TUC on Monday 29 May to mark gender pensions gap day.
The analysis shows more than 1 in 10 women in Yorkshire and Humberside (10.7%) are in jobs where their employers do not have to enter them into a workplace pension, while the figure is less than 1 in 20 (4.7%) for men.
Employers are required by law to automatically enrol workers into a pension if they earn £10,000 a year or more, and to make contributions for them.
But 1.4 million women across the country earn less than this threshold – potentially leaving many without an occupational pension.
Young workers set to miss out
Auto-enrolment does not kick in until workers turn 22, but the government has recently announced plans to lower this age threshold to 18.
While this is a welcome step, the number of young workers in low-paid and part time jobs will limit its impact.
Today’s analysis reveals that more than 1 in 3 (36%) younger women and 1 in 8 (15%) younger men aged 18-21 do not earn enough to require their employers to auto-enrol them.
Gender Pensions Gap Day
These figures are published as the TUC marks Gender Pensions Gap Day (Monday 29 May) – the day women pensioners effectively start getting paid their pension.
Prospect union has calculated that the income gap between men and women in retirement is now 40.5%, more than twice the level of the gender pay gap (currently 14.9%).
The huge pensions income gap between men and women means that the average retired woman effectively goes nearly five months of the year without getting a pension.
Why is there such a big gender pensions income gap?
The TUC says the main drivers of the gender pensions income gap are:
The TUC says that unless these disparities in pension wealth are tackled, the gender pension gap will persist when today’s workers reach retirement.
TUC Regional Secretary Bill Adams said:
“Women taking on caring responsibilities are a key driver of the gender pensions gap and the gender pay gap.
“We need to invest more in childcare and social care, and in the women workers who overwhelmingly work in these professions. That’s a key way to close the gender pay gap.
On the need to bring more women into pensions auto-enrolment Bill Adams added:
“We need to fix our pension system so that all women in our region can benefit from a decent income in retirement.
“But many are missing out on having any sort of occupational pension at all. Unless ministers act now, more women will be consigned to poverty in retirement.
“Ministers should start by scrapping the earnings threshold for auto-enrolment. Workers should have the chance to build up a pension, regardless of how much they earn.”
Government action needed
This year’s gender pensions gap is the is the highest since 2015-16, when it was 40.7%. It represents £7,100 less pension income in 2020-21 for an average retired woman compared to an average retired man.
The TUC is calling on ministers to take urgent action to close the gap more quickly.
Taking better measures to address the gender pay gap – like introducing mandatory action plans along with pay reporting – would help, but the union body also wants the government to:
Employees aged 22-65 who don’t qualify for pensions auto-enrolment
|
Male |
Female |
Total |
Earning less than 10k |
565562 |
1387291 |
1952853 |
Total employees |
13125518 |
12768222 |
25893740 |
% |
4.3 |
10.9 |
7.5 |
Employees aged 18-21 who wouldn’t qualify for pensions auto-enrolment
Sex of respondent |
Male |
Female |
Total |
Employees |
209421 |
240005 |
449426 |
Less than 10k |
30656 |
87022 |
117678 |
% |
15 |
36 |
26 |
Employees aged 22-65 who don’t qualify for pensions auto-enrolment by region/nation
Region/Nation |
|
Employees |
Employees earning less than £10k |
% |
North East |
Male |
468895 |
17387 |
3.7 |
Female |
494828 |
63081 |
12.7 |
|
North West |
Male |
1436772 |
49136 |
3.4 |
Female |
1356687 |
134980 |
9.9 |
|
Yorkshire and Humberside |
Male |
1042487 |
48962 |
4.7 |
Female |
1024732 |
110006 |
10.7 |
|
East Midlands |
Male |
926482 |
46669 |
5.0 |
Female |
886429 |
122142 |
13.8 |
|
West Midlands |
Male |
1141015 |
66452 |
5.8 |
Female |
1095071 |
158712 |
14.5 |
|
East of England |
Male |
1254391 |
36146 |
2.9 |
Female |
1179872 |
121909 |
10.3 |
|
London |
Male |
1957003 |
114059 |
5.8 |
Female |
1856538 |
129233 |
7.0 |
|
South East |
Male |
1809196 |
57606 |
3.2 |
Female |
1765961 |
154118 |
8.7 |
|
South West |
Male |
1058633 |
29971 |
2.8 |
Female |
1071342 |
143926 |
13.4 |
|
Wales |
Male |
591495 |
27476 |
4.6 |
Female |
536650 |
76754 |
14.3 |
|
Scotland |
Male |
1098763 |
56057 |
5.1 |
Female |
1145855 |
118520 |
10.3 |
|
Northern Ireland |
Male |
340386 |
15641 |
4.6 |
Female |
354257 |
53910 |
15.2 |
|
|
Total |
25893740 |
1952853 |
7.5 |
- The Trades Union Congress (TUC) exists to make the working world a better place for everyone. We bring together more than 5.5 million working people who make up our 49 member unions. We support unions to grow and thrive, and we stand up for everyone who works for a living.
TUC press office
media@tuc.org.uk
020 7467 1248
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