Draft Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2018 Draft National Employment Savings Trust (Amendment) Order 2018

Kirsty Blackman Excerpts

Tuesday 6th March 2018 General Committees

[Kirsty Blackman (Aberdeen North) (SNP)]

It is a pleasure to take part in this Delegated Legislation Committee at this early time in the morning. On NEST, the Scottish National party has no concerns to raise about that part of the discussion. Our position on automatic enrolment and particularly the earnings trigger is that the scheme should be expanded so that as many employees as possible can take part. This has been our long-standing position and the Minister would expect me to put this forward today.

I am slightly concerned that the Minister seems to be slanting the decision-making process around both the earnings cap and the qualifying earnings band towards benefit and simplicity for employers, rather than the widest possible benefit for employees. I am sure that is not necessarily what he meant; it was just the way it was put across in this relatively short debate this morning. I understand what the Minister says about simplicity and consistency around the qualifying earnings band but, again, it should be the best possible deal for employees and those taking part in this deal, rather than one that is simply the easiest for businesses to administer.

The Minister did not seem to provide much evidence for keeping the earnings cap at £10,000. We believe that it should be expanded to cover those earning less than that amount. To add a point, if there were more people earning a real living wage that people could live on, it would be less of a concern that they would have to divert possible savings money into day-to-day spending.

Our major concern is that the Department has been unable to show a significant level of consultation around the decisions that have been made. I cannot see evidence for consultation with a wide range of people to decide the best possible level for either the earnings cap or the qualifying earnings trigger. I know the Government are busy dealing with Brexit—as we all are—but this is particularly important for those earning very little and who are most likely to be in poverty when they hit pension age. It would have been better if the Government had done more in the way of consultation and providing evidence about why they have suggested these figures as the most appropriate levels, rather than just some arbitrary level that happens to have been chosen.

Having said all of that, we will not oppose the measures at this stage. However, it would be useful for the Minister to give us a little more information on the decision-making process and, if possible, a commitment to wider consultation next year or the year after—or the next time this is discussed—so that we can see the evidence for the decisions that are made.