Local MP, Robert Largan, is backing plans to extend pension auto-enrolment to everyone over the age of 18, including part-time workers, which leading research shows will add £3.78 billion to the savings of workers in High Peak.
Mr Largan has today announced his backing for a Private Members’ Bill by fellow Conservative MP Richard Holden, which would add £2.77 trillion to the pensions savings of workers across the UK.
Auto-enrolment into pensions was introduced in 2012 by the Conservative-led Coalition Government and, as a result, the amount of people saving towards a workplace pension has increased from 46.5 per cent to 77.6 per cent.
But auto-enrolment is currently limited to workers aged over 22 who earn over £10,000 a year. This excludes many part-time workers who earn below the threshold—or have multiple jobs—and means that young people who start work or an apprenticeship at 18 do not receive the benefit of auto-enrolment for the first four years of their employment.
Robert Largan, MP for High Peak, commented:
“I am committed to ensuring that workers are able to retire with the dignity they deserve.
“The extension of pension auto-enrolment to everyone aged 18 and over, including part-time workers, is estimated to increase total lifetime savings for workers across High Peak by a staggering £3.78 billon.
“This long-term change would significantly improve the savings rates of thousands of my hard-working constituents, and boost their pensions—especially part-time workers and women.”
Richard Holden, MP for North West Durham, commented:
“Auto-enrolment has been one of the massive hidden triumphs of the last decade in the UK, but sadly millions of hard-working British people aren’t benefitting because they’re under 22, or simply not working enough hours. I want to change that.
“In 2017 the Government said that it would look at extending auto-enrolment by the mid-2020s, but to hit those dates we need legislation now to make it happen, and allow businesses time to phase in these important changes. That’s what my Bill will do.
“Nothing could show clearer intent towards long-term levelling-up than ensuring that everyone who works hard will see a safer and more secure retirement.
“I am delighted to have the support of Robert Largan in the High Peak, and hope that the Government backs our campaign for action now.”