1. What recent assessment she has made of trends in the number of people contributing to a workplace pension.
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
You have impeccable timing, Madam Deputy Speaker.
Workplace pension participation rates have more than doubled since the introduction of automatic enrolment under the coalition Government in 2012, rising from 42% in 2012 to 85% in 2018. In West Worcestershire, my hon. Friend’s constituency, 9,000 eligible jobholders have been automatically enrolled, and thanks are due to the 2,600 local businesses that are supporting them.
This has truly been one of the great policy successes of the last decade, but many would argue that people are still not saving enough for a comfortable retirement. Does the Minister plan to use other nudge techniques, such as automatic uplifts whenever a person gets a pay rise, to encourage saving for old age?
Guy Opperman
We have the 2017 review, which we continue to monitor and will implement going forward. Automatic increases are not part of the Government’s present plans, but I am actively looking to learn from private sector companies that are carrying out similar initiatives. I welcome my hon. Friend’s interest and would be happy to discuss this in more detail.
Jack Dromey (Birmingham, Erdington) (Lab)
Auto-enrolment, the creation of the last Labour Government, has transformed the lives of millions, with 10 million more now saving into a workplace pension, but 5 million people are still not covered because they are too young, because they earn too little or because they are self-employed.
The hon. Member for West Worcestershire (Harriett Baldwin) is right that 8% cannot be the summit of our ambition to ensure security and dignity in retirement. Does the Minister agree that 8% cannot be right, and will he agree to cross-party talks on putting right that wrong?
Guy Opperman
As the hon. Gentleman knows, we frankly speak far too often—virtually on a weekly basis —to ensure a cross-party approach to pensions policy. He is right that automatic enrolment was conceived under a Labour Government, implemented under the coalition and brought forward by the Conservatives. I accept that 8% is not enough going forward, but we await the 2017 review, the implementation of that review and further discussions on an ongoing basis.
This Government need to demonstrate that they stand on the side of self-employed people. Given that millions of self-employed people are not saving enough for their retirement, what update can the Minister provide the House on the incentives and encouragement we are providing for self-employed people to pay into a pension?
Guy Opperman
As a formerly very fat, self-employed jockey and a self-employed white-collar barrister, I fully appreciate the issues concerned. I agree with my right hon. Friend that these are issues we have to address. He will be aware that we are trialling self-employment matters on an ongoing basis with the National Employment Savings Trust and a variety of private sector organisations. We welcome unions and other organisations that wish to be part of that, and it is front and centre of what we are trying to do.
Too many young people do not save for their pensions, so how can the Minister ensure that young workers are better represented in workplace pension schemes?
Guy Opperman
The statistics are actually getting better by the minute. In 2012, only 35% of young people aged between 22 and 29 saved into a workplace pension. Now 85% of 22 to 29-year-olds save, but there is more we can do, including for the self-employed. The 8% that is being saved has made a transformational difference, and the opt-out rate among the young is the lowest of all the cohorts.
Personal Independence Payment Assessments and Outcomes
State Pension Age: Life Expectancy
Claimants with Disabilities: Number of Assessments
People with Disabilities: Financial Assistance
Working-age Social Security Benefits: Four-year Freeze
State Pension Age Equalisation: Financial Support for Women
Topical Questions
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ConservativeColchester
The Department is working with a range of organisations to support claimants who are transitioning to universal credit. Help to Claim, which is being delivered by Citizens Advice, is working effectively for claimants, and we are in the concluding stages of detailed discussions for a second year of delivery.
On a recent visit to my local jobcentre, it was clear that we have excellent staff and that they support universal credit. Will the Minister outline what plans are in place for outreach services for those who might be intimidated by a visit to the jobcentre or, indeed, who want to access support online?
I thank my hon. Friend for his question and for visiting his local jobcentre. All jobcentres have wi-fi and computers available for claimants to access the internet. For those who are still unable to access or use digital services, or who are not able to travel, assistance to make and maintain their claim is available via the freephone UC helpline. As I mentioned, Help to Claim offers tailored practical support to help people make a UC claim.
Sara Britcliffe
As universal credit is rolled out, I welcome the use of new technology to help applicants, particularly in Hyndburn. What support is available to make sure applicants make the best use of the new systems?