The Institute of Economic Affairs (IEA) has warned that Labour's recently announced plans to extend auto-enrolment to lower earners would "damage businesses" while "failing to help low earners".
Shadow work and pensions secretary Rachel Reeves on Thursday outlined plans to reduce the threshold for AE eligibility from £10,000 to £5,772, effectively enrolling 1.5 million more workers - including some one million women - into a pension scheme. She said low earning families are facing a cost-of-living crisis and are finding it increasingly hard to save for their retirement, which in turn "threatens to store up huge costs for taxpayers in the future with a rising benefits bill". But the IEA hit back at Reeves' plans arguing the move would "nudge people into joining pension arrange...
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