Policy background
Automatic enrolment has transformed pension saving, with over 11 million employees automatically enrolled into a workplace pension by September 2023. In 2021, 86% of private sector eligible employees were saving in a workplace pension, up from 42% in 2012. This Act builds on this success by enabling the extension of automatic enrolment to deliver a stronger, more inclusive savings culture for future generations.
	In the 2017 Review of Automatic Enrolment, the government committed to introducing changes to automatic enrolment in the mid-2020s. This Act enables the Secretary of State to deliver on that commitment and extend workplace pensions automatic enrolment by:
Introducing a power to make regulations to reduce the lower age limit at which otherwise eligible workers must be automatically enrolled into a pension scheme by their employers. The policy intent is to use this power to make regulations to reduce the lower age limit from 22 to 18.
Introducing a power to make regulations to reduce or repeal the Lower Earnings Limit (LEL) of the qualifying earnings band so that contributions are calculated from the first pound earned.
	This Act gives the Secretary of State for Work and Pensions powers to make regulations which would implement these changes to eligibility for automatic enrolment following a period of consultation on the implementation approach and timing, to help to ensure they can be implemented in a suitable way to help manage costs arising from the changes for all parties.