---

Pensions Bill

This has been an important debate. As we have said before and will doubtless say again before the end of these proceedings, automatic enrolment is at the heart of this package of reforms. However, the amendment seeks to remove the lower age limit to allow jobholders to be automatically enrolled between the ages of 16 and 22. That would undo the balance that we have struck between maximising saving through automatic enrolment and minimising employer burdens by limiting automatic enrolment to between the age of 22 and state pension age. In addition, requiring employers automatically to enrol jobholders aged between 16 and 22 would increase the burden on them. We believe that selecting the age of 22 strikes the right balance between the age when job tenure becomes more stable and encouraging workers to start workplace pension saving at an early age. Starting automatic enrolment at age 22 will also minimise costs associated with frequent job turnover among the young, especially students, which might reduce the incentive to hire younger workers. As has been recognised, we are not excluding young people from saving in a workplace pension as jobholders between the age of 16 and 75, because they can opt in to workplace pension saving and receive an employer contribution. I think that both my noble friend and the noble Lord, Lord Skelmersdale, assumed that there would be no automatic employer contribution if a 16 year-old opted in.