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Pensions (Extension of Automatic Enrolment) (No. 2) Bill

The Pensions (Extension of Automatic Enrolment) (No. 2) Bill was introduced by Jonathan Gullis (Con) as a Private Members’ Bill (Presentation Bill) on 27 February 2023. A previous Pensions (Extension of Automatic Enrolment) was introduced on 20 July 2022 by Richard Holden (Con) as a Private Members' Bill (under the Ten Minute Rule) but later withdrawn on 23 February 2023.

Second reading of the Bill took place on 3 March 2023 and Committee stage on 15 March 2023.

Auto-enrolment

Auto-enrolment requires employers to enrol eligible employees into a workplace pension scheme. Unless they opt-out, employees will build up a private pension through their contributions and those of their employer.

Workers covered by auto-enrolment are those who:

• are not already in a workplace pension scheme;
• are between age 22 and State Pension age; and
• earn more than a minimum earnings threshold (£10,000 since 2015/16).

In 2022/23, contributions are required to be made on earnings between a lower earnings limit set at £6,240 and an upper earnings limit set at £50,270.

Measures in the Bill

The Bill would amend the Pensions Act 2008 to enable the Secretary of State to:

• Make regulations to reduce the lower age limit for auto-enrolment.
• Make regulations to remove the Lower Earnings Limit for qualifying earnings. This would mean auto-enrolment contributions are made from the first pound of earnings.