Darling rejects calls to delay auto-enrolment

Former Chancellor Alistair Darling has warned the coalition not to delay pensions auto-enrolment, following suggestions that economic problems could see the plan shelved for a year.

Speaking at the National Association of Pension Funds (NAPF) annual conference, Darling (pictured) said the Tories would certainly be considering a delay to pensions auto-enrolment, scheduled to start next November, due to pressure from businesses and the Treasury. However, he said stalling would remove a vital plank of retirement reform and risked millions relying on the state in retirement.

‘Auto-enrolment must not be delayed,’ said Darling. ‘I think it is a critical part of pension reform. Unless you get everyone into the pensions system, saving for retirement, then they will in one way to another come to rely on benefits. 

‘There is never a good time to start this. If we thought this downturn would last only a few months or a year then there might be an argument [for delaying auto-enrolment] but at the moment it may be some considerable time before we say we are through this and on the way to recovery.’

Darling said if the government was to put off auto-enrolment for more than a year then it would effectively be sending the message that it is not going to happen.

‘It would take a huge plank out of the architecture that is being put in place,' he said.

Last week a report by millionaire Tory donor Adrian Beecroft put forward a number of cost-saving measures the government could put in place, including a delay to auto-enrolment.