New rules needed for automatic enrolment in pension scheme for ‘all workers over 18’

The government has been urged to change pension rules amid the ongoing cost of living crisis. After winning last week’s general election, the Conservative government has been urged to act urgently to deliver a much-needed boost to pensions for UK households.

Clive Pugh, partner at Burges Salmon, told the Daily Express thathere are some of the previous government policies that the new Labour ministers could introduce. He said: “Many of our clients have a long list of issues they would like the new Pensions Minister to address as soon as possible.

“For defined benefit (DB) schemes, the most urgent request will be to see the new DB funding code issued by the Pensions Regulator (which will accompany the regulations coming into force for schemes with a valuation date from 22 September 2024).”

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And extending automatic enrollment is another issue, Mr. Pugh said, because new rules have been “passed but not yet in effect” to extend them to all workers aged 18 and over. They currently apply to workers aged 22 and over.

“But there are many other unresolved and ongoing legal issues,” he said. Michael Hayles, another partner at Burges Salmon, said: “With the promise of significant reforms to employment law, we could see a new Labour government take a fresh look at workplace pension rights – perhaps increasing auto-enrolment contribution rates or extending duties to address long-term concerns about pension adequacy.”

And he asked: “Against the promised wave of insourcing of public services, will we see more wholesale changes to existing public service pension systems? Climate change is likely to be a key focus – Labour’s manifesto pledged to make the UK “the world capital of green finance” and require pension funds and other financial institutions to “develop and implement credible transition plans consistent with the 1.5°C target of the Paris Agreement”, but what will this requirement look like and how will it be implemented?”