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Towards the end of the statement the DWP focuses on future plans, such as pensions dash boards and ‘mid -life MOTs’.
Also confirmed, is that the government is exploring abolishing the Lower Earnings Limit for contributions and reducing the eligible age to 18. These plans have previously been discussed in a private members bill, but confirmation of the DWP actively taking interest is promising for its success. .
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General Pensions News
HMRC releases pension saving research conducted in 2016 Published: 19 April 2022 Emailed: 20 April 2022
HMRC has released a report from research institute, Ipsos MORI, exploring pension tax relief and public awareness and savings behaviours. The report, titled “Pension tax relief: awareness, understanding and saving behaviours”, was due to be released in July 2016, but wasn’t due to the extended pre-election period following the EU referendum.
This has now been released following a Freedom of Information (FOI) request and made available publicly.
The key findings of the report show that 26% of adults (aged 16-55) surveyed did not think that the government provides a pension top-up and 33% did not know. Of those unaware, two thirds say they would be encouraged to save more if they were aware that their pension savings were tax-free.
The pensions landscape has changed significantly since 2016, and with changes such as the pensions dashboard on the horizon, the government has shown its intention to further educate the public.
The report also explores opinion on other alternative arrangements that could be used, such as no tax on retirement and a flat rate top up, and compares them against the current tax system.
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Uber face legal action over Sharia non-compliant pensions Published: 20 April 2022 Emailed: 20 April 2022
Last year, a survey conducted by the website Islamic Finance Guru found that 30% of Muslims surveyed did not have a pension, with most of them citing lack of Sharia compliance as the reason. Now, we are seeing Uber facing legal action from trade union ADCU for not providing a Sharia compliant pension to its workforce, who are estimated to be majority Muslim. This follows Uber using Now Pensions as its provider after the courts ruled that its drivers were workers, and as such are required to automatically enrol them. The ADCU is requesting that Uber make corrective arrangements within 14 days. Pension providers are not required to offer Sharia compliant funds for savers to invest in, however companies are required to act according to the Equality Act 2010. Not doing so can be discriminatory and prompt legal action. Sharia compliant funds are restricted from investments in certain sectors, such as gambling, tobacco, weaponry and some finance activity. Not providing a pension scheme that offers such a fund could result in the Muslim workforce opting out or investing in a fund that contradicts the tenets of their faith.
Concerns into the compliance of the Local Government Pension Scheme (LGPS) have also been raised, but there are currently no claims being brought against the scheme. In the case of the LGPS, offering an alternative introduces more
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