Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2021

Baroness Ritchie of Downpatrick Excerpts

Thursday 25th February 2021 Lords Chamber

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, I would also like to thank the Minister for introducing these regulations and it is a pleasure to follow my noble friend Lord Foulkes. Like him, I am also a member of the Common Frameworks Scrutiny Committee, and he raised two particular issues to do with Northern Ireland. As a former Minister with responsibility for benefits in Northern Ireland, I recall working with the Labour Government, and particularly the noble Lord, Lord McKenzie, in relation to the Pensions Act 2008. There is similar legislation in Northern Ireland, but Northern Ireland has always introduced its own social security legislation—that goes back to the date of partition, I think, in 1921.

I support this statutory instrument because I believe it provides an element of fairness and I support the principle of auto-enrolment. I suggest to the Minister that it could be built upon. It is worth noting that Age UK found that 1.9 million pensioners are still living in poverty in the UK. That means that over a quarter of pensioners, despite having worked all their lives, paid their taxes and contributed to our economy, are now living their later years facing more challenging decisions than they necessarily should; wondering whether they can afford to turn the heating on or pay their bills and watching how every penny is spent.

Returning to this statutory instrument and the general issue of auto-enrolment, I have several questions for the Minister. At this time of the pandemic, could she indicate what work has been undertaken about the impact of Covid-19 on workplace pensions? If so, could the Minister share those findings, any assessments and recommendations for the future with your Lordship’s House? Workplace pensions are important because almost 19 million are now involved in such schemes. What consideration have the Government given to putting money aside in a government savings scheme as a top-up to workplace pensions? I noted that the Minister in the other place, Guy Opperman, seemed to refer to the possibility of that in a debate on pensions on 10 December. Is that going to happen?

In many ways, furlough has probably meant that a lot of employees have retained their roles and pension contributions have had to continue as part of furlough. Is there a figure or an estimated figure for the UK in relation to this?

The fallout for pensions will become known only when we have a clearer picture of the impact on jobs. Some local pension experts in Northern Ireland have told me that there has not been a surge in people opting out during this period because of the government support schemes. A bigger worry would be those in the self-employed category—the noble Baroness, Lady McIntosh of Pickering, referred to this. I believe there has been a trend of owners of small to medium-sized businesses suspending or reducing their own contributions to protect cash flow within their business. What further protections and assurances can be provided for them to ensure that their pensions and entitlements do not collapse?