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Govt to freeze auto-enrolment earnings trigger

Retirement plan-pension-report

The government is set to freeze the auto-enrolment earnings trigger at £10,000 next year as it confirms a review of the flagship pensions policy will include how to bring more self-employed people into retirement saving.

The government estimates a £71m boost in pension savings from freezing the trigger, alongside increasing the lower earnings band from £5,824 to £5,876 and the upper earnings band from £43,000 to £45,000.

Employers are likely to contribute around £30m more while individuals are set to increase contributions by £31m as a result of the combined changes.

The Department for Work and Pensions expects a further £10m in tax relief to be offered on individual contributions.

In a series of documents on the success of auto-enrolment release today, DWP also confirms that its 2017 review of the policy will include how to bring more self-employed people into pension saving, as well as people with multiple jobs who do not meet the criteria for auto-enrolment.

DWP says it will review again the earnings trigger qualifying earning bands, as well as age eligibility, in the 2017 report.


Currently, workers aged between 22 and state pension age earning above £10,000 who have an employment contract are automatically enrolled.

Pensions minister Richard Harrington had previously hinted he wanted to examine how to bring the self-employed into pension saving as part of its review into the success of auto-enrolment next year.

The government is set to appoint an advisory board to support the auto-enrolment review, with terms of reference to be published early next year.



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