Overview
- Chancellor Rachel Reeves will formally launch the Department for Work and Pensions-led auto-enrolment review during her Mansion House speech next Tuesday, ahead of Parliament’s summer recess.
- The review will consider raising total contributions above the current 8 percent level, with pension providers advocating a phased increase to 12 percent.
- It builds on the Pension Schemes Bill reforms of May–June that merged small pots into megafunds to cut fees and strengthen domestic investment.
- The Office for Budget Responsibility has flagged that private pension savings remain insufficient to secure adequate retirement income and could increase pressure on public finances.
- Business groups had shelved a consultation on higher contributions last year after an employer National Insurance rise, and the DWP plans fresh stakeholder engagement as part of this review.