Changes could help many across the UK significantly boost their pension pots for the future.
Young workers could see a huge boost for their future pensions (Image: Getty)
Campaigners are calling on the Labour government to introduce new rules that could provide an extra £46,000 to pension pots.
They want Chancellor Rachel Reeves to lower the age threshold for auto-enrolment and remove the lower earnings limit.
Scottish Widows says this could help boost the average future pension pot for 18-year-olds by 45 percent.
An extra 4.7million people could receive pension contributions from their employers if the rules are changed.
Currently, employers have to contribute a minimum of three percent while employees must put in five percent. However, this only applies to workers from the age of 22.
Lowering the threshold to 18 would see would mean young people would benefit from an extra four years of pension savings.
Pete Glancy, head of pensions policy at Scottish Widows, said: “The introduction of auto-enrolment in 2012 was a game-changer, but now it’s time to scale that up.
“Reducing the age threshold to 18, lowering earning limits, bringing in self-employed workers, and upping default rates all build on the existing framework and would be incredibly powerful in getting more people in the UK saving enough for the future, while also looking at how people’s financial goals complement each other, rather than compete.”
There are four ways the Government could change the rules to help boost the pension pots of youngsters.
The first is lowering the threshold form 22 to 18. Scottish Widows say that this could add 15 percent to pension pots.
Another option is removing the earnings threshold of £10,000. This could allow those in low-paid work, such as part-timers, to boost their future pots.
It would take away employers’ ability to deduct the lower earnings limit from an employee’s salary before calculating their pension contributions.
Finally, the Government could raise default contributions to 12 percent, taking more from workers’ pay now to help them save more for their pension pots.
The beautiful but underrated UK seaside town that’s frozen in the 1950s
EXCLUSIVE: Frinton-on-Sea has a population of 8,000 people united by a love for their seaside resort home. Locals tell Express.co.uk what makes it so special.
Frinton-on-Sea is a reminder of bygone days for some locals (Image: James Linsell-Clark/SWNS/Daily Express)
There is a beautiful seaside town in Essex which some locals say is just like England was when they were children in the 1950s and 60s.
Frinton-on-Sea on the county’s north coast has a reputation for being a bit old-fashioned and much quieter in summer than nearby resorts.
The small town is a refuge from the bright lights and hordes of sun and thrill-seekers who head to Clacton-on-Sea to the west and Walton-on-the-Naze to the east when the mercury heads upwards.
Peter Wade and his wife, Pat, moved to Frinton from Enfield, north London, when they retired from their jobs in local government.
Sitting outside Cafe 14 in Frinton’s main thoroughfare, Connaught Avenue, Mr Wade, 72, recalled life in London, where he felt unsafe stepping outside his own front door at night.
Frinton is like England in the 1950s and 60s, local Peter Wade says (Image: James Linsell-Clark/SWNS/Daily Express)
Peter and Pat Wade moved to Frinton-on-Sea from north London (Image: James Linsell Clark / SWNS)
He added: “The area changed the last seven years we were there. There were two murders. The house next door was converted into a drugs den. We came here because this is England as we knew it as children. We can walk down this road and say hello to so many people.
“It’s old England and the values of old England I grew up with. The community spirit we have here, in my mind, is second to none. It’s a spirit I grew up with in the 1950s and early 60s.”
A few yards from Connaught Avenue’s car-lined pavements lies the town’s Esplanade, where The Rock, Frinton’s last hotel open for business, is situated.
From there it’s a short descent to the seaside where colourful beach huts face the North Sea, which at high tide sends its waves crashing into the sea wall.
Becky Dance, 44, her mum, Linda Hartnoll, and grandchildren Hugo and Greyson travelled down for the day from Colchester.
Roderick Grossephan describes himself as a ‘non-converted Frinton-lover’ (Image: James Linsell Clark / SWNS)
“It’s just lovely,” Becky said. “It’s nice and quiet. The kids just love playing here.” Linda added: “It’s safe here because it’s very flat.”
Not everyone at the beach was as impressed as the families and friends ambling along the seafront or relaxing outside the beach huts.
Roderick Grosstephan, a retired chartered surveyor from Epping, described himself as a “non-converted Frinton-lover”.
He said: “I find it such an odd place really. I like a bit of peace and quiet. I would say a day is enough. I prefer mountainous regions.”
Mr Grosstephan, 76, did admit that Frinton “has a certain charm”, citing the Adnams’ store in the town as a “nice surprise”.
Rob Morgan, a Conservative councillor on Frinton and Walton Town Council, said the town has a reputation for being a bit posh, but there isn’t as much wealth in the town as there was in its heyday.
Frinton councillor Rob Morgan says the town has changed over the years despite appearances (Image: James Linsell-Clark/SWNS/Daily Express)
Sun-worshippers flock to Frinton in summer (Image: James Linsell-Clark/SWNS/Daily Express)
He said: “Between the wars this was an upmarket seaside resort. Now there’s only one hotel left. Others have been converted into old people’s homes… In the school holidays the town gets quite crowded.”
Mr Morgan said the town’s unique appeal is thanks in part to the army of volunteers who look after its parks, gardens and thoroughfares, including by ensuring blooms are at their best.
Frinton boasts a number of clubs, including Frinton War Memorial Club, known affectionately as “the Mem”, where locals meet for a drink and a natter. At the edge of town is Frinton Golf Club, another favourite with some Frintonites.
A Telegraph report had identified Frinton as the country’s NIMBY capital, pointing in part to the length of time it took for the town to agree to the opening of its first pub, The Lock & Barrel.
But Mr Morgan said most locals’ drinking and socialising needs were met in one or more of the town’s clubs, hence the sparsity of watering holes in Frinton.
A Frinton resident of some 20 years, Mr Morgan said despite appearances the town has changed over the years, with its High Street now dominated by eateries and cafeterias where there used to be a wide range of shops.
Mechanisation of gates at the level crossing which acts as something of a landmark in the town also proved controversial as it meant the loss of a job for the man who used to operate the barrier by hand.
Overall though, Mr Morgan echoed the sentiments of many when he said: “It’s a really delightful town. I love living here… When you talk about older people being isolated, it doesn’t happen in Frinton.”
DWP warning as pensioners on some benefits ‘to lose £600’
Hundreds of thousands of households are set to be affected by the cut to the Winter Fuel Payment by the Government, which will save the Treasury almost £1.5bn
Rachel Reeves discusses axeing of winter fuel payments
Those over State Pension age receiving Personal Independence Payment, Disability Living Allowance, Attendance Allowance and Carer’s Allowance, which aren’t means-tested, will be left without the Winter Fuel Payment.
State Pension recipients will also no longer qualify. In an effort to direct the annual fuel payment towards those with the lowest incomes, it is now limited to households receiving any of five means-tested benefits.
These include Pension Credit, Universal Credit, income-related Employment and Support Allowance (ESA), income-based Jobseeker’s Allowance and Income Support.
It’s crucial to highlight that while all of these except Pension Credit are not available to people over State Pension age, if you are in a household where one person is of State Pension age and the other isn’t, the younger partner may be receiving one of those other benefits such as Universal Credit, which would be done as a joint claim taking all household income into account.
The Government is now striving to increase the uptake of Pension Credit, as it is estimated that 880,000 people are missing out despite being eligible, in order to enhance the number who receive the Winter Fuel Payment under the new regulations.
The Winter Fuel Payment, typically ranging from £100 to £300 depending on age and circumstances, was boosted over the past two years by a ‘pensioner cost of living payment’ of up to £300, taking the total to a maximum of £600, reports Birmingham Live.
However, with the removal of the £300 cost of living top-up that had been added in 2022 and 2023 and new restrictions on who receives the standard £300 amount, many households will find themselves £600 worse off this winter as bills are set to rise under the new Ofgem price cap.
Most payments are made automatically in November or December. Those eligible for the newly-restricted scheme should receive a letter detailing how much they’ll receive and into which bank account it will be paid.
If you believe you qualify but don’t receive a letter or the money has not been paid in by January 29, 2025, you will need to contact the Winter Fuel Payment Centre on 0800 731 0160.
Under the changes announced by Rachel Reeves, anyone receiving the following benefits – and NOT any means-tested benefits – will no longer be eligible for Winter fuel payments from this year onwards.
The 9 benefits that no longer qualify for Winter Fuel Payment
These are the benefits that are no longer eligible for the Winter Fuel Payment. A policy shift will restrict the support and see the number of older people receiving the payment fall from 11.4 million to 1.5 million – meaning just under 10 million would lose out on the cash. The move will save about £1.5 billion.
- Personal Independence Payment (PIP)
- Carer’s Allowance
- Disability Living Allowance (DLA)
- Attendance Allowance
- State Pension
- War Pensions Scheme
- Industrial Injuries Disablement Benefit
- Incapacity Benefit
- Industrial Death Benefit
Pensioners claiming disability-related benefits are poised to lose (Image: Getty)
This is just the first in a series of expected welfare reforms under Labour’s stewardship. Chancellor Rachel Reeves has signalled tough choices ahead, stating in anticipation of Labour’s initial Budget on October 30: “involve taking difficult decisions to meet our fiscal rules across spending, welfare and tax.”
She levelled criticism at the previous Conservative government for creating a staggering £22 billion deficit in the national budget, necessitating severe corrective measures.
Stay informed about all things related to money, shopping and the DWP by joining the BirminghamLive Money Saving Group on WhatsApp. Immerse yourself in a community dedicated to delivering the latest updates, valuable tips, and vital information.
Subscribe to our Money Saving Newsletter for daily digests and breaking news focused on benefits, pensions, finances, bills, and shopping deals.
