Opinion  

Call to end the ‘motherhood penalty’ grows louder

Gregg McClymont

Gregg McClymont

A number of auto-enrolment tweaks would work to decrease the pensions gender gap, as well as increasing the pensions coverage and ensure that the largely under-pensioned are included.

Abolishing the net-pay tax quirk would ensure 1.75m low earners - the majority of which are women - receive much-needed tax relief through auto-enrolment that they currently miss out on.

And cutting the required earnings to be eligible for an auto-enrolment pension to the primary National Insurance threshold to bring in half a million new pension savers - three-quarters of whom would be women

With the gender pensions gap currently more than double the size of the total gender pay gap, something must be done.

Gregg McClymont is a former shadow pensions minister and director of policy at The People’s Pension