The TUC has welcomed proposals made by Shadow Secretary of State for Work and Pensions Rachel Reeves to lower the earnings trigger for pensions auto-enrolment and set up a commission under David Blake to consider the future of pensions in the wake of the Budget changes. TUC General Secretary Frances O’Grady said: “It is absolutely right to extend pensions auto-enrolment to the low paid who are missing out. The government has stealthily been depriving more low-paid women of pensions contributions every year – it is time to put that right. “The Chancellor tore up the way that people turn their savings into pensions income in the Budget, but did nothing to put anything in its place. But what people want in retirement is a predictable regular income, and the Chancellor’s proposals will undermine the good ways that this can be done as well as the rip-offs. “That is why we welcome the new Commission, to be chaired by Professor David Blake, to examine the future of pensions. “It is good to see Labour coming out strongly for ‘target pensions’, the better name for the collective defined contribution schemes that share risk between members and which already deliver better outcomes in countries such as the Netherlands. There is a growing support for this approach and we welcome suggestions that necessary legislation will be in the Queen’s Speech.” |
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