Pensions

Jim Shannon Excerpts

Monday 1st March 2021 Commons Chamber

[Jim Shannon (Strangford) (DUP) [V]]

It is clear that automatic enrolment for pensions has been a good thing for many people, so I am pleased to add my support for the measure. The Library briefing puts it succinctly:

“The policy has reversed the decline in workplace pension saving. The rollout of automatic enrolment from 2012 onwards has led to a tenfold increase in total membership of defined contribution occupational schemes, from 2.1 million in 2011 to 21 million in 2019.”

That is a success story if ever there was one. The briefing continues:

“Actively contributing membership rose from a low point of 0.9 million active members in 2011 to 10.6 million members in 2019.”

Success indeed! Employers who had to furlough staff because of coronavirus could claim help for pensions contributions before 1 August 2020. Since then, however, they have had to meet costs themselves both for furloughed hours and hours worked. May I ask the Minister whether that will be looked at and changed or reviewed, as it has left some employers in a difficult position? While many have been able to access grant schemes for their closed businesses, anyone who owns more than one shop in Northern Ireland only receives a grant for one business—no matter that their staff could be employed in four shops or even more.

There is absolutely pressure on employers at this time, which will increase if staff earn less than the required lower limit. I personally believe that while we should look at the lower earnings limit, as other Members have said, I am thankful that that is reviewed annually. That is important, and it is good to see that in place. This is not the time to put more pressure and obligations on employers, and I believe that this year we should keep the limit as it is. Some companies will need help to get back on their feet for the next six months, and will find themselves in completely new circumstances next year. Making a small employer’s contribution for a staff member on low hours should not be a final nail in the coffin.

I support everyone who works to have access to a private pension scheme, but I truly do not believe that this is the time to implement a change. I hope that the Minister will confirm in his response that the Government will support employers in every possible way over the coming months, knowing that we will reap the rewards with thriving businesses in the years to come if we sow and till now. Never has that been more necessary, as the covid-19 pandemic has illustrated.