The Pensions (Extension of Automatic Enrolment) (No. 2) Bill was introduced by Jonathan Gullis (Con) as a Private Members’ Bill (Presentation Bill) on 27 February 2023. A previous Pensions (Extension of Automatic Enrolment) was introduced on 20 July 2022 by Richard Holden (Con) as a Private Members' Bill (under the Ten Minute Rule) but later withdrawn on 23 February 2023.
Second reading of the Bill took place on 3 March 2023 and Committee stage on 15 March 2023.
Auto-enrolment
Auto-enrolment requires employers to enrol eligible employees into a workplace pension scheme. Unless they opt-out, employees will build up a private pension through their contributions and those of their employer.
Workers covered by auto-enrolment are those who:
- are not already in a workplace pension scheme;
- are between age 22 and State Pension age; and
- earn more than a minimum earnings threshold (£10,000 since 2015/16).
In 2022/23, contributions are required to be made on earnings between a lower earnings limit set at £6,240 and an upper earnings limit set at £50,270.
Measures in the Bill
The Bill would amend the Pensions Act 2008 to enable the Secretary of State to:
- Make regulations to reduce the lower age limit for auto-enrolment.
- Make regulations to remove the Lower Earnings Limit for qualifying earnings. This would mean auto-enrolment contributions are made from the first pound of earnings.