01785 243276 admin@howardsca.co.uk

The Government is considering changes to auto-enrolment pension schemes. Its aim? To help more people save towards their retirement. 


Proposal backed by industry experts 

A private members’ bill went before Parliament on  22 January 2022. The Pensions Regulator and industry experts support the proposal. 


Auto-enrolment at age 18 

The proposal reduces the minimum age for auto-enrolment. This is set to drop from 22 to 18. It will help younger workers. Effectively, it gives them an extra four years to save. 


Changes to auto-enrolment pension schemes 

Additionally, the proposal would scrap the £10,000 minimum earnings trigger. Initially, qualifying earnings would be limited to £6,240, or £120 a week. So, no changes for 2022. In 2024, the earnings threshold would become £100 a week. By 2025 the limit would drop to £60 a week. Ultimately, in 2026, the earnings threshold would be abolished. Overall, lower paid workers are set to benefit. 


Government aim 

Fundamentally, the aim is to improve pension saving. To ensure that every employee over the age of 18 is eligible to save into a pension scheme. The changes are expected to make it more affordable for them. For employers, however, the proposed expansion of auto-enrolment is likely to prove more costly. This could be an unwelcome burden. Especially as businesses recover from the pandemic. 



It’s likely that employers will have questions about the proposed changes to auto-enrolment pension schemes. Contact our specialist team on 01785 243276.