Statutory Instruments
2021 No. 314
Pensions
The Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2021
Made
15th March 2021
Coming into force
6th April 2021
The Secretary of State for Work and Pensions has considered whether any of the amounts in sections 3(1)(c), 5(1)(c) and 13(1)(a) and (b) of the Pensions Act 2008( 1 ) should be increased or decreased, as required by section 14(1) of that Act( 2 ).
A draft of this Order was laid before Parliament in accordance with section 143(4) and (5)(c) of that Act( 3 ) and approved by a resolution of each House of Parliament.
The Secretary of State for Work and Pensions makes the following Order in exercise of the powers conferred by sections 14(2), 15A(1) and 144(4) of that Act( 4 ).
Citation, commencement and interpretation
1. —(1) This Order may be cited as the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2021.
(2) This Order comes into force on 6th April 2021.
(3) In this Order, “the Act” means the Pensions Act 2008.
Increase of amount
2. In section 13(1) of the Act (which deals with qualifying earnings and the amounts constituting the lower and upper thresholds of the qualifying earnings band), in paragraph (b), for “£50,000” substitute “£50,270”.
Rounded figures
3. For the purposes of sections 3(6B), 5(7B) and 13(2) of the Act, for a pay reference period referred to in an entry in column 1 of the table—
(a) the amount of a jobholder’s earnings which triggers the automatic enrolment, or as the case may be, the automatic re-enrolment of the jobholder pursuant to sections 3 and 5 respectively of the Act, is the rounded figure( 5 ) in the corresponding entry in column 2 of the table;
(b) the lower amount of qualifying earnings (see section 13(1)(a) of the Act), is the rounded figure in the corresponding entry in column 3 of the table( 6 );
(c) the upper amount of qualifying earnings (see section 13(1)(b) of the Act), is the rounded figure in the corresponding entry in column 4 of the table( 7 ).
Table
Column 1 Pay Reference Period | Column 2 Automatic enrolment and automatic re-enrolment earnings trigger: rounded figure | Column 3 Lower amount of qualifying earnings: rounded figure | Column 4 Upper amount of qualifying earnings: rounded figure |
|---|---|---|---|
| 1 week | £192 | £120 | £967 |
| 2 weeks | £384 | £240 | £1,934 |
| 4 weeks | £768 | £480 | £3,867 |
| 1 month | £833 | £520 | £4,189 |
| 3 months | £2,499 | £1,560 | £12,568 |
| 6 months | £4,998 | £3,120 | £25,135 |
Revocations
4. The following are revoked—
(a) the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2019( 8 ), to the extent it remains in force; and
(b) article 3 of the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2020( 9 ).
Signed by authority of the Secretary of State for Work and Pensions
Will Quince
Parliamentary Under Secretary of State
Department for Work and Pensions
15th March 2021
2008 c. 30 . Sections 3(1) and 5(1) were substituted by section 5(1) and (3) respectively of the Pensions Act 2011 (c. 19) (“the 2011 Act”). Relevant amendments were made by S.I. 2012/1506 , 2013/667 and 2014/623 . Section 13(1) was amended by S.I. 2012/1506 , 2013/667 , 2014/623 , 2015/468 , 2016/435 , 2017/394 , 2018/367 , 2019/374 and 2020/372 .
Section 14 was substituted by section 8(1) of the 2011 Act and amended by S.I. 2016/224 .
Section 143(5)(c) was amended by section 8(3) of the 2011 Act.
Section 15A was inserted by section 9 of the 2011 Act.
See sections 3(6B), 5(7B) and 15A of the Act. Sections 3(6B) and 5(7B) were inserted by section 5(2) and (4) respectively of the 2011 Act and deal with pay reference periods of less, or more, than 12 months. Section 15A provides for the specification of rounded figures in respect of specified pay reference periods.
See section 13(2) and 15A of the Act. Section 13(2) deals with pay reference periods of less, or more, than 12 months in connection with the amounts constituting the lower and upper amounts of the qualifying earnings band.
See footnote (b) relating to article 3(b).
S.I. 2019/374 . Articles 2(a) and 3 were revoked by S.I. 2020/372 .