Statutory Instruments
Pensions
Made
12th March 2014
Coming into force
6th April 2014
The Secretary of State for Work and Pensions has considered whether any of the amounts in sections 3(1)(c), 5(1)(c) and 13(1)(a) and (b) of the Pensions Act 2008(1) should be increased or decreased, as required by section 14(1) of that Act.
A draft of this Order was laid before Parliament in accordance with section 143(4) and (5)(c) of the Pensions Act 2008(2) and approved by a resolution of each House of Parliament.
The Secretary of State for Work and Pensions makes the following Order in exercise of the powers conferred by sections 14(2), 15A(1) and 144(4) of the Pensions Act 2008(3).
1.—(1) This Order may be cited as the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2014 and comes into force on 6th April 2014.
(2) In this Order “the Act” means the Pensions Act 2008.
2.—(1) In sections 3(1)(c) (automatic enrolment) and 5(1)(c) (automatic re-enrolment) of the Act(4), for “£9,440” substitute “£10,000”.
(2) In section 13(1) (qualifying earnings) of the Act(5)—
(a)in paragraph (a), for “£5,668” substitute “£5,772”; and
(b)in paragraph (b), for “£41,450” substitute “£41,865”.
3. For the purposes of sections 3(6B), 5(7B) and 13(2) of the Act(6), in the case of a pay reference period of a length described in the first row of the table, the rounded figure in respect of the provision of the Act mentioned in the first column of the table is that which appears below the pay reference period which corresponds to that provision.
| 1 week | 2 weeks | 4 weeks | 1 month | 3 months | 6 months | |
|---|---|---|---|---|---|---|
| Sections 3(6B) and 5(7B) | £192 | £384 | £768 | £833 | £2,499 | £4,998 |
| Section 13(2) (referring to section 13(1)(a)) | £111 | £222 | £444 | £481 | £1,443 | £2,886 |
| Section 13(2) (referring to section 13(1)(b)) | £805 | £1,611 | £3,221 | £3,489 | £10,467 | £20,933 |
4. Article 3 of the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2013(7) is revoked.
Signed by authority of the Secretary of State for Work and Pensions.
Steve Webb
Minister of State,
Department for Work and Pensions
12th March 2014
(This note is not part of the Order)
This Order makes provision under sections 14 and 15A of the Pensions Act 2008 (c. 30) (“the Act”).
Article 2 increases the amounts in sections 3(1)(c), 5(1)(c) and 13(1)(a) and (b) of the Act. The amount specified in section 3(1)(c) is the amount of earnings that a jobholder must receive before an employer is subject to the duty imposed by section 3 in relation to that jobholder. The amount in section 5(1)(c) is the amount of earnings a jobholder must receive before an employer is subject to the duty imposed by section 5 in relation to that jobholder. Section 13 of the Act provides that a person’s qualifying earnings are earnings of more than the amount specified in section 13(1)(a) and not more than the amount specified in section 13(1)(b).
Article 3 specifies rounded figures for the purposes of sections 3(6B), 5(7B) and 13(2) of the Act. The amounts specified in sections 3(1)(c), 5(1)(c) and 13(1) of the Act, and increased by article 2, are in relation to a pay reference period of 12 months. Sections 3(6B), 5(7B) and 13(2) provide respectively that where the pay reference period is less or more than 12 months, the amounts specified in sections 3(1)(c), 5(1)(c) and 13(1) apply as if they were proportionately less or more. This article provides rounded figures in respect of the pay reference periods other than 12 months.
Article 4 revokes article 3 of the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2013 (S.I. 2013/667).
An analysis of the impact of this legislation has been made. The analysis is published as a Department for Work and Pensions Ad Hoc statistical release on https://gov.uk/government/publications/review-of-the-automatic-enrolment-earnings-trigger-and-qualifying-earnings-band-for-201415 .
2008 c. 30. Section 3(1) was substituted by section 5(1) of the Pensions Act 2011 (c. 19) (“the 2011 Act”) and amended by S.I. 2013/667. Section 5(1) was substituted by section 5(3) of the 2011 Act and amended by S.I. 2013/667. Section 13(1) was amended by S.I. 2013/667. Section 14 was substituted by section 8(1) of the 2011 Act.
Section 143(5)(c) was amended by section 8(3) of the 2011 Act.
Section 15A was inserted by section 9 of the 2011 Act.
Sections 3(1)(c) and 5(1)(c) were amended by S.I. 2013/667.
Section 13(1) was amended by S.I. 2013/667.
Section 3(6B) was inserted by section 5(2) of the 2011 Act and section 5(7B) was inserted by section 5(4) of the 2011 Act.