Automatic Enrolment (Offshore Employment) (Amendment) Order 2020

Baroness Altmann Excerpts

Tuesday 19th May 2020 Lords Chamber

[Baroness Altmann (Con)]

I thank my noble friend for laying these statutory instruments, and for her excellent introduction. I also congratulate the Government on protecting the principle of auto-enrolment, which has been so successful in bringing millions more people into the policy of pension saving and provision for retirement. This principle has been preserved for all sectors by extending the application of auto-enrolment to this group of maritime and seafaring workers.

I also congratulate the Government on protecting the principle of automatic enrolment during the furlough scheme. This principle is so important and, by deciding that automatic enrolment—at least at the minimum statutory level—will be protected through the current crisis in the furlough scheme, the Government have shown an excellent example of considering the longer term amid a short-term emergency.

We have the lowest state pension in the developed world. That makes supplementary saving essential, and the principle of extra private provision, supported by employers and taxpayers, is an important one throughout our society. I congratulate the noble Baroness, Lady Drake, and other noble Lords on all the work that they have done over the years to introduce and protect this policy.

Perhaps I may raise one issue that my noble friend is aware I have particular concerns about. It is the position of low-paid workers who are being automatically enrolled into net pay pension schemes through their workplace. They do not get the tax relief that they would in an alternative scheme, and therefore they are paying an extra 25% for their pension. As the Institute for Fiscal Studies has pointed out, these workers clearly are those who are most in need of every extra penny that they can earn. I know that this net pay policy is one that I know my noble friend the Minister and the department have been looking at, and I urge the Government to take seriously the proposals to address this issue.

I fully support these statutory instruments and I congratulate the Government and my noble friend. I look forward to continuing the successful policy of auto-enrolment into the future.