Select committee: Work and Pensions Committee

Recommendation 10

Third Report - Protecting pension savers – five years on from the pension freedoms: Saving for later life Published 30 Sep 2022 Paragraph 85 Addressed to Department for Work and Pensions
Recommendation (the committee's words)
We are concerned that many people working in the gig economy may be missing out on their right as a worker to build up a pension through auto-enrolment. The Pensions Regulator (TPR) told us it faces considerable challenges in enforcement, with employers challenging its decisions at every stage and having to meet a high evidential burden at tribunals. The Department for Business, Energy and Industrial Strategy issued guidance on 26 July 2022, bringing together existing case law. TPR told us that while this new guidance would be helpful to refer to in its discussions with employers and at tribunals, it would still need to evaluate decisions from employers on a case-by-case basis and argue its case at tribunal. We heard from Uber and the GMB that better enforcement arrangements are needed to ensure workers get their pension rights. We repeat the recommendation made in two previous reports that the Government should bring forward an Employment Bill for parliamentary scrutiny as soon as possible to increase the legal protection available to people in low-paid work and the gig economy. In the meantime, we recommend that DWP should work with TPR to estimate how many people working in the gig economy should be classed as workers and what resources or powers TPR needs to be able to ensure employers in the sector comply with their auto-enrolment duties. They should report back to us by March 2023.

From: Work and Pensions Committee, Third Report - Protecting pension savers – five years on from the pension freedoms: Saving for later life (HC 126), paragraph 85, 30 September 2022

Government response

The government responded to the whole report on 23 January 2023 (deadline 30 November 2022).

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government "notes" the Committee's report and responds to each recommendation in turn, committing to implement the 2017 Automatic Enrolment Review measures while declining several proposals.

  • On the 2017 Review, it remains "committed to the implementation" of its ambitions "in the mid-2020s" and aims to bring forward legislation "at a suitable opportunity and when parliamentary time allows", with a consultation on implementation.
  • It declines to consult on a plan for older savers without Defined Benefit pensions, saying "We do not believe now is the right time to consult", and does not support trialling automatic Pension Wise bookings.
  • It states that "a new office is necessary" is not its view: the government "does not believe that a new office is necessary" to build the evidence base on retirement adequacy.
  • On the gender pensions gap, it is developing a definition and says any target "could only be considered once a suitable definition has been agreed upon".

Read the government's response ↗ Report an error