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Pensions Bill

moved Amendment No. 40A: 40A: Clause 12, page 6, line 32, leave out paragraph (a) The noble Lord said: We have already had reference to the lower earnings limit at £5,035. By setting the start contribution facility of personal accounts, as it were, the Government are excluding those jobholders who have several part-time jobs, to whom the noble Baroness, Lady Hollis, just referred. This group is largely composed of those workers whose saving habits the Government claim to be most concerned about: women, low earners and those with a lack of job stability. In spite of the Minister’s answers to the noble Baroness, Lady Dean, who is no longer in her place, and the noble Baroness, Lady Hollis, I fail to understand why the Government have decided to exclude this group. I also do not understand why the lower earnings limit was the appropriate level at which to start paying pensions contributions. How many people whose total earning is above £5,035 do they estimate will be excluded? We have had some figures, but I am not sure that they are appropriate on this occasion. The other point is about administrative complexity. By calculating only qualifying earnings from £5,035, the Government are imposing a great deal of administrative complexity on employers who already provide a pension but currently count all the earnings. I shall not repeat what we said on the amendment tabled by the noble Baroness, Lady Hollis. I beg to move.