Bosses are to be forced to offer pensions to all workers who are over 22 and earn more than £8,105 a year.
The Tories hail this as a generous benefit they are bestowing on workers. In reality it will open the door to them slashing the meagre state pension further by shifting the responsibility for pensions onto workers themselves.
Many bosses will escape the obligation to provide pensions because workers who can’t afford the contributions can opt out. That will push out all those enduring pay cuts and freezes who find it increasingly hard to make ends meet. Then the Tories will find it even easier to blame them for any poverty they suffer after retirement.
Bosses will take on more part time workers to try and escape the pension obligation. They will take on younger workers—then sack them when they turn 22. We have already seen this happen with bosses trying to avoid higher minimum wage rates.
It’s little wonder that the bosses’ CBI is backing the scheme. The TUC described it as the beginning of a “pensions new deal”. But it won’t protect workers in their retirement.
The real problem is successive governments’ refusals to provide decent state pensions for all. The best way to defend workers’ pensions is to strike against this rotten government.