The Department for Work and Pensions has confirmed that 9 in 10 employees are now actively contributing to a workplace pension, representing 22.6 million savers. This milestone comes under the new Labour government led by Prime Minister Andy Burnham, who now oversees the controversial £10,000 earnings rule that determines eligibility for automatic enrolment.
Automatic Enrolment Threshold Frozen Since 2014/15
Employees aged between 22 and state pension age qualify for automatic enrolment into a workplace pension if they earn at least £10,000 a year. This earnings trigger has remained unchanged since the 2014/15 tax year, despite significant increases in both the national living wage and median earnings over the past decade. The DWP has indicated no immediate plans to alter the threshold under the Burnham administration.
Participation Rates Closely Tied to Earnings Levels
According to the latest DWP figures, workplace pension participation rises steadily with annual earnings, appearing to stabilise at around 80% when earnings reach approximately £20,000. There is a marked shift in participation either side of the £10,000 trigger, highlighting its critical role in determining eligibility. Overall, the workplace pension participation rate across the UK stood at 82% in 2025, representing 24.2 million employees saving for retirement.
Experts Urge Review of the Earnings Trigger
Rebecca Williams, financial planning divisional lead at Rathbones, noted a concerning trend: “It’s notable that opt-out rates have edged higher. Cost-of-living pressures continue to squeeze household finances, making long-term saving harder for some people to prioritise. Meanwhile, lower participation among some groups and employees working for the smallest businesses shows there is still work to do to make retirement saving truly universal.”
Becky O’Connor, head of pensions at PensionBee, highlighted the disparity created by the frozen threshold: “The difference in participation before and after the £10,000 trigger indicates that voluntary enrolment for lower earners is unusual. It shines a spotlight on whether reducing or removing the trigger could be a policy focus for boosting retirement outcomes among lower earners, or those that work across multiple jobs.”
David Pye, director at Broadstone, cautioned that participation alone is insufficient: “Pension accumulation is now firmly established as a normal part of working life. However, participation alone does not guarantee an adequate retirement income. The focus must shift towards ensuring contribution levels are sufficient to provide financial security in later life.”
