Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps her Department taking to tackle the gap in pension income for (a) people who are BAME, (b) women and (c) low paid earners.

The level of earnings at which workers are automatically enrolled (the earnings trigger) is subject to an annual statutory review. The review includes analysis of the equalities impact and an assessment of reducing the trigger to the National Insurance threshold.

Since 2014/15, the annual reviews have concluded that the earnings trigger be frozen at £10,000. People earning below the trigger have a right to opt in, and if they are earning above the lower earnings limit (£6,240 in 2020-21) they will receive an employer contribution.

Automatic enrolment has hugely increased women’s pension participation, participation across all ethnic groups, and among lower earners. Among eligible women in the private sector, participation has increased from 40% in 2012 to 86% in 2019, equal to men. Among eligible employees in the private sector earning between £10,000 and £20,000, 19% were participating into a workplace pension in 2012. As of 2019, this rate had increased to 79%, a 60 percentage point increase.