A recent Labour proposal has been introduced that is looking to lower the eligibility threshold at which workers are auto-enrolled into a workplace pension. The proposal is asking that the threshold be changed from £10,000 to £5,772.
HR experts explain that this change would have a direct effect on lower level earners and could bring another 1.5 million workers into the national insurance arrangement.
Initially, the Government objected to the lower threshold stating that contributions of those that earn less would be minimal. While this is an extremely valid concern, some HR experts feel that this is the type of proposal that would get lower earners engaged. Furthermore, the thought process is that if these workers were engaged, they would start to understand the value of their contributions, increasing their level of contributions in due time.