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Automatic-enrolment Bill passes second reading in the House of Lords Published: 18 July 2023 Emailed: 19 July 2023
The Pensions (Extension of Automatic Enrolment) (No. 2) Bill has passed the second reading and is now at the committee stage. This Bill permits two extensions to automatic enrolment – abolishing the Lower Earnings Limit (LEL) for contributions and reducing the age for being automatically enrolled to 18 years old.
The Bill was debated in parliament on Friday 14 July 2023 and Baroness Altmann expressed that the measures could benefit 600,000 18 to 21-year-olds working in the private sector.
Baroness Altmann, said:
‘‘The Bill provides regulation -making powers to amend the automatic enrolment framework set out in the Pensions Act 2008. The Secretary of State for Work and Pensions will be required to carry out a public consultation on the proposed use of these powers to lower the minimum age and abolish the lower earnings limit, with the findings having to be reported to Parliament before regulations are made. It is promised, I believe, that the consultation will be later this year, so I do not think that we will have to wait too long. All noble Lords will therefore be able to consider and vote on the detail of the proposals for secondary legislation before they become law. I hope that noble Lords will therefore be able to support these enabling measures in the Bill today. As the Government have promised, this measure will be in place — or the intention is that it will be in place — by the mid- 2020s. Of course, there is more to do, including extending auto-enrolment to workers with earnings in any one job below £10,000 as well, but that can be covered elsewhere, and to the self-employed. However, these measures are an important start. I welcome the improvements, and I hope that noble Lords across the House will do so. I commend the Bill to noble Lords.’’
A date is yet to be announced for the committee stage, which is a line-by-line consideration of the detail of the bill.
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Legislation day announcements Published: 19 July 2023 Emailed: 19 July 2023
Tuesday 18 July, also known as legislation day (L-Day), included draft legislation for potential Finance Bill 2023-24 measures along with supporting policy documents, explanatory notes, tax information and impact notes.
Draft legislation published largely follows on from policies announced at Spring Budget 2023 and Tax and Administration Maintenance Day (TAMD). The government is also making announcements in a small number of technical tax policy areas and publishing a number of consultations and summaries of responses.
Some of the measures from the announcement include:
• research and development (R&D) reliefs – draft legislation to introduce a new permanent rate of relief for the most R&D intensive loss-making small to medium sized enterprises (SMEs) from 1 April 2023, as well as on the proposed design of a potential merged scheme combining the SME and R&D expenditure credit (RDEC) schemes • reform of audio-visual creative tax reliefs – draft legislation to implement the previously announced modernisation and reform of the existing audio-visual tax reliefs into expenditure credits. The reforms include a higher rate of relief for animation and children’s TV, which will also be extended to animated films • administrative changes to the High Income Child Benefit Charge (HICBC) – the government wants to simplify the process for customers who become liable to the HICBC, particularly for those who currently need to register for self-assessment to pay the charge. The government will provide details in due course on how it will enable employed customers to pay through their tax code, without the need to register for self- assessment
In addition, the following policy papers have been published:
- Abolishing the pensions lifetime allowance - Pensions tax relief — amendments to the relief at source legislation - Change to data HMRC collects from customers
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