Research reveals 800,000 workers being 'under-enrolled' in pension schemes

03 Sep 2020

Research carried out by the Resolution Foundation has revealed that 800,000 workers are being 'under-enrolled' in company pension schemes and are not receiving their legal employer pension contributions.

The latest report from the Resolution Foundation's ongoing investigation into labour market enforcement considers the extent of non-compliance with the pensions automatic enrolment scheme, and whether there are 'under-enrolment' hotspots that 'require closer scrutiny'.

The think tank found that the pensions auto-enrolment scheme has been a success overall, with more than ten million workers joining company schemes since 2012.

However, 'under-enrolment' is particularly acute among agency and minimum wage workers, according to the Resolution Foundation.

Hannah Slaughter, Economist at the Resolution Foundation, said: 'Around 800,000 workers across the economy are currently 'under-enrolled', and the problem is particularly acute among agency workers and those on the minimum wage, where around one in ten workers are not getting the pensions they deserve.

'Now is the time for The Pensions Regulator to step up its enforcement – supported by greater resources – as part of a wider agenda for the government to make Britain's post-COVID labour market a better environment for workers, and a far tougher one for the small minority of firms that break the law.'