When the Pensions Commission reports back next year, the government will show "that help is there for those who need it", the work and pensions secretary has said. 

At the Labour party conference in Liverpool on Sunday, Pat McFadden highlighted the Pensions Commission in his speech about how society should support people.

"Labour has always believed it is the mark not only a decent society but a strong one that help is there for those who need it," he said.

This will be apparent when the Pensions Commission issues its final recommendations "on how to secure dignity in retirement for tomorrow’s pensioners", which are due next year, he added.

The Pensions Commission recommendations are expected to focus especially on low earners and the self-employed, even as the state pension, which low earners typically rely on more heavily, has risen significantly with the triple lock.

In time for the Labour party conference, Pensions UK has today called on the government to set out a timetable for increasing minimum auto-enrolment pension contributions from the current 8%. 

 

A survey the group commissioned from Yonder UK found the majority of small (71%) and medium sized (79%) businesses support auto-enrolment increases provided they are given two years to prepare (79%) and increases are phased (80%). The research suggests that giving two years' or phasing in increases support among businesses of all sizes from 33% to 52%. Only about one in 10 remain opposed. 

 

“With the Second Pensions Commission finalising the package of proposals that will form its final report due next spring, we are approaching crunch time for political decision making on pensions adequacy,” said chief policy officer Zoe Alexander. 
  
“A gradual, predictable roadmap would give employers the certainty they need, help savers adjust, and build the consensus needed for a fairer and more adequate pensions system. If we want to deliver long term household financial security, standing still is not a neutral option,” she added.  

The association of pension funds wants to see a gradual increase in minimum contributions to 12% of qualifying earnings, split evenly between employers and employees, with the final position reached by 2035. Contributions currently fall more heavily on employees (5%) than employers (3%). In comparison, Australia's system requires employers to contribute 12% of pay including commissions and bonuses, while employee contributions are voluntary. A minimum earnings threshold of AU$450 (£238) a month was removed four years ago.

 

While workplace pensions lag, the state pension has been boosted by policy choices, including by this government. McFadden highlighted this year's £575 increase in the new state pension in his speech as a way the government is offering support. Labour has pledged to keep the increasingly controversial 'triple lock' mechanism for state pension uprating in place during this parliament.

There are growing calls to reform the way the state pension increases amid runaway costs. At £15.5bn a year by 2029-30, the triple lock is set to be three times as expensive as originally projected and is seen by most economists as unsustainable. The Office for Budget Responsibility expects state pension spending to rise from 5% to 9% of GDP in the next 50 years, with the triple lock accounting for about a third of this increase.

While reassuring his audience about old age benefits on Sunday, McFadden gave pointers that there could be a fresh attempt to change benefits for working age people, as he said the government will "make sure the welfare state meets the challenges of new times".

Pointing to the Milburn and the Timms reviews, he said once their reports are out, "there will be decisions to make and responsibilities to take". McFadden said welfare must be renewed with "work and opportunity at its heart".

Sir Keir Starmer's government had attempted to reform welfare in 2025 but was forced into a U-turn by Labour backbenchers.