Ros Altmann: The hidden scandal of net pay and low earners

Auto-enrolment (AE) is a celebrated success, with millions more people having workplace pensions as a result. We want this success to continue - nobody wants to see confidence in workplace pensions undermined. However, there is an issue with the potential to do just that. A hidden scandal which could surface at any time and to which we need to find a resolution as soon as possible. The problem concerns employers auto-enrolling workers who earn less than £11,500 a year - mostly women - into a scheme administered on a net-pay basis. Such schemes force these low earners to pay 25% extra ...