Source · Select Committees · Work and Pensions Committee
Recommendation 14
14
Deferred
Paragraph: 102
We heard that the level at which the auto-enrolment earnings trigger is set (£10,000) currently...
Recommendation
We heard that the level at which the auto-enrolment earnings trigger is set (£10,000) currently excludes too many people, with the result that they miss out on employer contributions and tax relief. We heard calls for it to be reduced or removed. We also heard that any such decision needed to be informed by a better understanding of the circumstances of low earners and the likely impact of any change on them. DWP plans to publish research in early 2023 which may help inform this. Following publication of this research, DWP should write to us setting out a timetable to review the level at which the earnings trigger is set and, if it is unable to do so, explain what action it intends to take to address the exclusion of low earners from auto-enrolment. We also recommend that DWP and HM Treasury continue to explore ways to bring multiple jobholders within the scope or auto-enrolment, for example, by amending the PAYE coding notice system to add an instruction to auto-enrol.
Government Response Summary
The government remains committed to the implementation of the 2017 Review ambitions in the mid-2020s, aiming to bring forward legislation at a suitable opportunity and when parliamentary time allows, and will consult on the implementation of the review.
Paragraph Reference:
102
Government Response
Deferred
HM Government
Deferred
We remain committed to the implementation of the 2017 Review ambitions in the mid-2020s. We aim to bring forward legislation at a suitable opportunity and when parliamentary time allows. We remain committed to carrying out a consultation on the implementation of the review to ensure this works effectively for all parties.