2017 pension review to focus on self-employed, £10k trigger frozen
The Department for Work and Pensions (DWP) has said it is going to look at self-employed workers and employees with multiple jobs who do not meet the criteria for auto-enrolment, as part of its 2017 review.
In its evaluation report released today, DWP said auto-enrolment ‘remains on track and has ‘increased workplace pension membership among eligible private sector employees by 37 percentage points’.
It said that once it has been implemented, 10 million workers will ‘be newly saving or saving more in a workplace pension as a result of auto-enrolment’ by 2018, and this will result in £17 billion extra being saved into workplace pensions by 2019/20.
‘But the government is keen that as many people as possible can benefit from their own long-term saving, topped up with employer and government contributions, to give them greater financial security in retirement,’ the DWP said.
And in 2017, the DWP is due to release its review of auto-enrolment, which it today said would consider the self-employed and those people with ‘multiple jobs who do not meet the auto-enrolment criteria’.
Damian Green, the work and pension secretary, said as part of the government’s push to ‘build a country that works for everyone’ it will look at those people who are not currently in the auto-enrolment scope.
‘After years of people not saving enough, auto-enrolment is helping millions of people, many of whom are low earners, benefit from a workplace pension,’ he said. ‘This will continue to boost retirement pots and help safeguard people’s standard of living in later life.
‘This government is committed to building a country which works for everyone, not just the privileged few, and now is the right time to consider who else – beyond the 10 million already set to benefit – could gain from auto-enrolment.’
However any legislative changes over this are unlikely to come soon, as pensions minister Richard Harrington said ‘we do not expect to make policy decisions on these areas during 2017’, in a written statement released today.
The DWP also announced that it will be freezing the auto-enrolment trigger of £10,000 for the 2017/18 tax year.
And for the upper threshold, beyond which the employer does not have to contribute, Harrington said this will be moved from £43,000 to £45,000 through an order before parliament in 2017.
The report said it will look at reviewing the age threshold as part of the 2017 review.
And within the review, the DWP today said it is going to set up an advisory board consisting of pensions industry experts and academics.
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