Source · Select Committees · Work and Pensions Committee
Recommendation 10
10
Acknowledged
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We are concerned that many people working in the gig economy may be missing out...
Recommendation
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.
Government Response Summary
The government will continue to work with TPR and BEIS on the gig economy issue, noting that many workers are already eligible for auto-enrolment, and BEIS continues to explore options for collecting data on labour market trends.
Paragraph Reference:
85
Government Response
Acknowledged
HM Government
Acknowledged
We will continue to work with TPR and BEIS on addressing this complex issue. It is our view that many ‘gig’ economy workers are already eligible for Automatic Enrolment, including fixed term contract, zero hours and agency workers. The Pensions Regulator is responsible for maximising employer compliance and monitors developments with the gig economy, taking action where appropriate to ensure businesses meet their Automatic Enrolment obligations. In 2017, BEIS commissioned research to develop its understanding of the characteristics of those participating in the gig economy and their experiences within it. The research found that around 4% of the population in Great Britain had worked in the gig economy in the previous 12 months. Since the publication of the 2018 BEIS research, there has been a growing body of external research looking at the gig economy. The definitions and metrics used to track or forecast trends in the gig economy vary considerably across studies. BEIS continues to explore further options to collect more timely and robust data on labour market trends and the gig economy, including through collaboration with the ONS.