Oral Answers to Questions

James Berry Excerpts

Monday 9th May 2016 Commons Chamber

[Andrew Bingham (High Peak) (Con)]

16. What steps he has taken to increase the number of younger workers subscribing to pension schemes.

[James Berry (Kingston and Surbiton) (Con)]

18. What steps he has taken to increase the number of younger workers subscribing to pension schemes.

[The Parliamentary Under-Secretary of State for Work and Pensions (Mr Shailesh Vara)]

The Government continue to roll out the programme of automatic enrolment of all eligible workers into workplace pensions. Of those eligible workers, approximately half are under 40, and the largest increase in pension membership in 2015 was among those aged 22 to 29.

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[Mr Vara]

I most certainly agree with my hon. Friend. The previous state pension system was extremely complex—it was difficult for people to know how much state pension they would get before they reached the state pension age—whereas the new state pension provides clarity from an early age as to what they can expect. In future, they will know that they can expect over £8,000 a year from the state—a solid foundation upon which to plan their own retirement savings.

[James Berry]

Having spent time with charities and high street banks in Kingston, I have been surprised by the low level of financial literacy they report, even among people with secondary and tertiary education. What steps will the Government take to ensure that young people receive the high-quality information and guidance they need, particularly on pension planning, which often feels a long way off to younger people?

[Mr Vara]

I thank my hon. Friend for that very good question. He will be aware that last October the Department and the Pensions Regulator jointly launched a refreshed communications campaign entitled “Don’t Ignore the Workplace Pension”, to help build on and maintain the success of the previous campaign in raising awareness of automatic enrolment. The campaign includes digital and social media advertising, as well as television and radio, and has helped to raise awareness and guide people towards further information.