Automatic Enrolment (Offshore Employment) (Amendment) Order 2020

Baroness Anelay of St Johns Excerpts

Tuesday 19th May 2020 Lords Chamber

[Baroness Anelay of St Johns (Con)]

My Lords, when auto-enrolment was introduced by legislation in 2008, and subsequently amended in 2012 to include seafarers and offshore workers—albeit subject to a sunset provision—I was Chief Whip and very much aware of the long route that we travelled towards achieving cross-party support for all the provisions to improve pension saving in the UK by encouraging people to contribute towards a pension. As ever, however, there was of course careful scrutiny of the Bill and the subsequent regulations throughout, particularly by the noble Baroness, Lady Drake, and the noble Lord, Lord McKenzie, both of whom are speaking in today’s debate.

I welcome the orders before the virtual House today. I notice that my screen has gone blank, but I am hoping that others can view what is going on.

I have a couple of questions for clarification of the proposals. At paragraphs 10.2 and 10.4, the Explanatory Memorandum refers to concerns raised by stakeholders about the drafting of the “ordinarily working” test, and states that they wanted it to be made more specific for seafarers and offshore workers. What definition was proposed by those stakeholders, and why did the Government decide that it would weaken the compliance regime and undermine the policy intention?

The total net equivalent annual direct cost to business is estimated at £22 million. Paragraph 12.1 of the memorandum makes it clear that part of that financial impact falls upon employers in the charity and voluntary sector. I appreciate what the Minister has already said about the assistance given to employers during the pandemic, but clearly at some stage that assistance will come to an end and there will be a financial impact on charities and the voluntary sector. I therefore ask: which employers of eligible seafarers and offshore workers fall within the category of being charities and voluntary bodies? For example, are we talking about organisations such as the RNLI, Mercy Ships or perhaps Greenpeace?

I recognise, as others have, that the impact of Covid-19 on the economy may cause employees to question the value of long-term savings and perhaps to be more prepared to opt out of pension schemes, having been auto-enrolled. I hope, however, that all employees will recognise the long-term benefits of pension savings.