Automatic Enrolment Earnings Trigger and Qualifying Earnings Band Review 2023-24

Thursday 26th January 2023 Written Statements

[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

Automatic enrolment into workplace pensions (AE) has been a great success to date, with over 10.8 million people having been automatically enrolled and more than 2.1 million employers meeting their duties. Since the introduction of AE in 2012, total annual pension saving by eligible employees has increased by £33 billion in real terms. The Government remain committed to building on this achievement and to transforming the retirement prospects for millions of workers.

The main focus of this year’s annual review of the AE earnings trigger and lower and upper earnings limits of the qualifying earnings band (the AE thresholds) has been to ensure the continued stability of the policy in the light of the impact of covid-19 and prevailing economic factors. We want to ensure that our approach continues to enable individuals, for whom it makes economic sense, to save towards their pensions while also ensuring affordability for employers and taxpayers. The review has concluded that all AE thresholds for 2023-24 will be maintained at their 2022-23 levels. This is consistent with our ambitions to build a stronger, more inclusive savings culture. The Government are considering what more can be done to enable people to have greater financial security in retirement.