Consultation | Extension of automatic enrolment for workplace pensions

Have your say on proposals to extend automatic enrolment for workplace pension schemes.

The Department for Communities (DfC) has launched a 12-week consultation on a draft Equality Impact Assessment which considers proposals to extend automatic enrolment for workplace pension schemes.

Currently, eligible workers must be automatically enrolled in a pension scheme by their employers from the age of 22 years old.

What are the new proposals?

The 12-week consultation sets out two key proposals, namely:

• To seek powers to lower this age limit. Lowering the age at which workers will be automatically enrolled will help make saving the norm for young adults and enable them to save from the start of their working lives; and
• To reduce or abolish the Lower Earnings Limit. In 2022/23, contributions are required to be made on earnings between the Lower Earnings Limit of £6,240 and the Upper Earnings Limit of £50,270. Reducing or abolishing the Lower Earnings Limit will enable those on lower earnings and multiple jobs to save from the first pound earned and to benefit from employee contributions on each pound earned.

The proposals will require a Northern Ireland Assembly Bill to be taken forward. They will not result in any immediate change but will give an incoming Minister powers to make regulations following a period of consultation on the implementation approach and timing.

How to respond to this consultation

You can respond to this consultation online or by writing to DfC.

Read full details on the consultation on proposals to extend automatic enrolment for workplace pensions.

First published 19 September 2023.