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Auto-enrolment to significantly benefit construction workers

The Department for Work and Pensions (DWP) has said that tradesmen such as plumbers, builders and carpenters are among those most likely to benefit from automatic enrolment into workplace pensions.

The new system is being phased in starting from this October, and Pensions Minister, Steve Webb, MP, said that construction industries have historically had poor workplace pension provisions, and the new regulations are likely to cause a sea-change in that situation.

The DWP said that just 33 per cent of workers in the construction sector are saving for a pension. Some 66 per cent of gas fitters, electricians and plumbers are saving for pensions, but those professions have also seen the sharpest decline in the number of people saving over the last 15 years, falling from 86 per cent.

Webb said that it is hoped that the new system will abate that decline.

“All workers deserve a decent income in retirement, and far too many are missing out at the moment, particularly those on low to moderate incomes who need them the most,” he said. “Next month, with the dawn of automatic enrolment millions of workers from every industry across the country will start saving so they can secure a more prosperous retirement.”