V

Viscount Younger of Leckie (Con)

Speaking in the House of Lords on 23 July 2025

Debate

Pensions: Low-income and Self-employed Workers

Contribution

My Lords, we welcome the setting up of the commission under the chairmanship of the noble Baroness, Lady Drake. Making the case for saving for retirement is crucial, given that the DWP has highlighted that 15 million people are saving too little for retirement, which is about half the workforce. Currently, helped by extended auto-enrolment, 8% is put into pension pots, with 5% by the employee and 3% by the employer. Pensions experts think that the total, however it is split, should be at least 12%, but lower-paid workers, including the self-employed, earning between £10,000 and £20,000, if they are saving, are in effect saving on average only 5.5%. I am surprised that the commission is not reporting until 2027. Why is that? What can the Government do right now in the meantime, beyond auto-enrolment, to encourage greater savings for retirement?

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