Scrap earnings trigger to close gender pension gap, urges union

A 39 per cent gender pension differential between men and women could be reduced by changes to auto-enrolment, according to the trade union Prospect.

The union, which represents 140,000 professional engineers, scientists and managers, is calling for government action into the disparity and has created a list of measures to close the gap.

The union calculates that women over pension age received around £7,000 a year less pension income than men on average based on an analysis of responses to the DWP’s Family Resources Survey.

Prospect senior deputy general secretary Sue Ferns is calling for an annual government report into the problem.

She proposes scrapping the earnings trigger in auto-enrolment as it disproportionately excludes women from pension contributions.

“The gender pension gap is arguably an even bigger problem than the gender pay gap, because it’s over twice as big and women usually only realise they are impacted by the time they have retired when it is too late to do anything about it,” she said.

“The first step in tackling the problem is to require government to present an annual report on the gender pension gap and its causes to Parliament when its policies for addressing it can be debated.”

Prospect is asking the government to report to parliament on the gender pension gap and in support of this has launched a petition on the UK Parliament petition website.

The proposals put forward by Prospect are as follows: Making pension contributions payable from the first pound in auto-enrolment and the earnings trigger is scrapped from the earliest possible date; and, changes to the tax system to resolve the problem whereby low earners in ‘net pay’ pension schemes do not benefit from tax relief on their contributions.

It also proposes an independent commission to consider the appropriate level of contributions under automatic enrolment; an additional state pension credit worth £2 per week for each year that someone is not working due to looking after children under 12; a campaign to encourage higher take-up of credits that can boost women’s pension income and, more affordable childcare.

    Share Story:

Recent Stories


DB risks
Laura Blows discusses DB risks with Aon UK head of retirement policy, Matthew Arends, and Aon UK head of investment, Maria Johannessen, in Pensions Age's latest video interview

Sustainable equity investing in emerging markets
In these highlights of the latest Pensions Age video interview, Laura Blows speaks to Premier Miton Investors fund managers, Fiona Manning and Will Scholes, about sustainable investing in equities within emerging markets

High-yield Investing
Laura Blows discusses short duration global high-yield strategies with Royal London Asset Management head of global credit, Azhar Hussain, in the latest Pensions Age podcast
Sustainable Investing
Laura Blows speaks to Royal London Asset Management sustainable fund manager, George Crowdy, about global sustainable equity investing