Automatic enrolment earnings thresholds review and revision 2015/16: government response to the consultation on revision proposals for the automatic enrolment earnings trigger and the qualifying earnings band

Document type
Corporate author(s)
Great Britain. Department for Work and Pensions.
Date of publication
1 December 2014
Poverty Alleviation Welfare Benefits and Financial Inclusion
Social welfare
Material type

Download (164KB )

This document sets out the government’s response to the consultation to review the earnings thresholds for automatic enrolment into a workplace pension for April 2015 to March 2016. 37 responses to the consultation were received in total.

Responses to the earnings trigger aspects of the consultation were split fairly evenly between those who favoured the simplicity and predictability of alignment with the Income Tax threshold and those who were concerned that alignment would exclude too many from pension saving. The majority of respondents, regardless of their favoured option, stressed the importance of having a trigger that is simple to administer and to explain. Most respondents were in favour of maintaining alignment with National Insurance (NI) thresholds when it came to the qualifying earnings band although a sizeable minority thought the lower limit should be removed altogether to introduce savings from the first pound earned. The upper limit was more widely supported with most who responded agreeing that it met the policy intent.

The government propose to lay a draft Revision Order before Parliament in early 2015 which specifies the following amounts:

  • £10,000 for the automatic enrolment earnings trigger;
  • £5,824 for the lower limit of the qualifying earnings band;
  • £42,385 for the upper limit of the qualifying earnings band.

Related to Poverty Alleviation Welfare Benefits and Financial Inclusion

Labour's proposed income tax rises for high-income individuals

Briefing note on Labour's proposed income tax rises

Should generations differ in their wealth accumulation

Working paper on wealth accumulation across the generations

Employees earnings since the great recession: the latest picture

Briefing note on changes in earnings over time

More items related to this subject