Automatic Enrolment (Offshore Employment) (Amendment) Order 2020

Baroness Kennedy of Cradley Excerpts

Tuesday 19th May 2020 Lords Chamber

[Baroness Kennedy of Cradley (Lab)]

My Lords, I too support this order and these regulations. Automatic enrolment into workplace pensions should continue for maritime workers and seafarers. They should have the same access as other workers in the UK economy. As acknowledged by other noble Lords, including my noble friend Lord Blunkett, auto-enrolment, introduced by the last Labour Government, was a landmark achievement. The welcome continuation of the policy between Governments has meant that 10.2 million people are now saving £90 billion a year via auto-enrolment.

However, there are issues that it would be remiss not to mention in this debate: the £10,000 threshold, the starting age of 22 and the problems for the self-employed. I hope the Government will look at these issues sooner rather than later, especially the age threshold. This change, implemented earlier than the mid-2020s, will help young people to start saving as early as possible and give their pensions more time to grow.

During the Covid-19 crisis, the Pensions Regulator has relaxed the requirement for employers to consult on cutting pensions contributions in some circumstances, and the period in which schemes must report payment failures has been extended from 90 to 150 days. Has an assessment of these changes regarding the pension pots of individuals been made?

Recently, a leaked Treasury document suggested that one way to ease the debt burden accumulated due to the lockdown would be to scrap the pensions triple lock. Are the Government considering this policy change?

As we discuss the regulation for the offshore sector, as noted by the noble Lord, Lord Purvis, we need to recognise the pressure this industry is under due to coronavirus. The recent business outlook report from the UK Oil and Gas Industry Association says that up to 30,000 jobs could be lost in the next 18 months. What action are the Government planning to support offshore sector workers?