Pensions (Extension of Automatic Enrolment) (No. 2) Bill

Laura Trott Excerpts

3rd reading
Friday 24th March 2023 Commons Chamber

[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

I begin by congratulating my hon. Friend the Member for Stoke-on-Trent North (Jonathan Gullis), and my hon. Friend the Member for North West Durham (Mr Holden) before him, on successfully piloting this Bill through all its stages in this House. Their efforts will improve the retirement aspirations for millions in the UK, from young people starting work at 18 with a pension for the first time, to those already in a workplace pension who will now build pension savings from the first pound of their earnings.

I acknowledge the support of Members across the House in progressing this legislation. The shadow Minister, the hon. Member for Wirral South (Alison McGovern), is right that there has been broad consensus on workplace pensions since the pensions commission. It is a testament to the importance that we all place on delivering improved retirement outcomes for our fellow citizens.

A lot has been achieved in the last decade of the reforms, as has been mentioned numerous times. More than 10 million people have been automatically enrolled into a workplace pension. More than 2 million employers are paying into employees’ pensions for the first time. My hon. Friends the Members for Crewe and Nantwich (Dr Mullan) and for Darlington (Peter Gibson) are right that it has been embraced by employers, and we should celebrate that. An additional £33 billion in real terms was saved into workplace pensions in 2021 compared with 2012. As has been mentioned, it has been especially transformative for women, low earners and young people, who historically have been poorly served by, or excluded from, workplace pensions. The Bill sets us on a path to do more for all those groups, who will benefit from increased saving in retirement, with many gaining access for the first time to employer contributions.

In Committee I spoke about the legislative powers in the Bill, and the duty placed on Government to consult on how we make the changes through regulations—both the approach to implementation and the timetable for doing so. We will report to Parliament on the outcome of that consultation before bringing forward the necessary secondary legislation, which will also be debated in this House. I look forward to engaging with hon. Members on those details, to ensure that the expansion of automatic enrolment is done in the right way for employers, workers and taxpayers.

To answer some of the shadow Minister’s questions directly, we will work closely with employers and trade unions throughout the consultation process. I have committed previously to launching the consultation in the autumn. I am not in a position to give an exact date, but I assure the hon. Member that I will push as hard as I can to get that as early as possible. Communicating to young people is incredibly important. Once we are through the consultation stage and we have a timeline for when we can make progress, we will work up a plan, and I will return to the House on that. On a timetable for the legislation to come into force, the commitment has previously been the mid-2020s, and that is what we will continue to say. We will have more of an idea once we have done the consultation process. I hope that answers all her questions.

In conclusion, it is to the huge credit of my hon. Friend the Member for Stoke-on-Trent North that he successfully introduced the Bill on a cross-party basis and navigated its passage—[Interruption.] There is a first time for everything. I am delighted to say that the Government support the Bill and will continue to support it as it moves through Parliament. I wish it every success.