To help more employees benefit, the FCA has worked with partners to provide clarity on the rules around schemes. This includes setting out how employers can avoid breaching National Minimum Wage requirements and explaining how providers can meet financial promotions requirements.
Savings are essential to help consumers manage their financial lives. But the latest Financial Lives Survey found that 1 in 10 people have no cash savings, and another fifth have less than £1000 put aside for a rainy day.
Workplace savings schemes could help millions of consumers to start saving regularly and build financial resilience, but only 7% of UK employers offer them.
Emad Aladhal, director of retail banking at the FCA said: “Financial inclusion is a shared effort, which is why we’re teaming up with partners and playing our part to help businesses understand how to apply the rules for the benefit of consumers. This clarity should give employers greater confidence to offer savings schemes that can help people navigate their financial lives”.
Emma Reynolds, economic secretary to the Treasury said: "Payroll savings schemes are a great way for everyday workers to put a little aside for a rainy day – this statement helps businesses support their employees to make good financial decisions. I look forward to publishing the Financial Inclusion Strategy later this year where we will build on this important work."
Oliver Morley, chief executive at the Money and Pensions Service said: “As shown by research we recently carried out with Nest Insight on opt-in and opt-out workplace savings, even a small amount set aside can provide financial resilience and peace of mind for employees. We will continue to support the FCA in engaging with government and industry to raise the profile of these schemes with employers.”
• Link to statement on workplace savings schemes
• FCA Strategy 2025 to 2030 - Our strategy 2025 to 2030
• The FCA has worked with HM Treasury, the Money and Pensions Service (MaPS), Information Commissioners Office (ICO), Department for Business and Trade (DBT) and the Prudential Regulation Authority (PRA), who have contributed to this statement.
• This statement focuses on opt-in workplace savings schemes, in adherence to existing legislation. We will continue to work with Government and other stakeholders to look at ways to further unlock opportunities for consumers to build greater resilience and navigate their financial lives.
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