A coalition aiming to help boost UK adults' financial resilience by supporting people to put money aside regularly through workplace saving schemes is launching on Tuesday.
Employer-Led Initiative
The employer-led National Coalition for Workplace Savings represents a range of sectors, including retail, hospitality, transport, facilities management, the public sector and charities. It collectively employs about 400,000 people and includes organisations such as the Co-op, First Bus, Next, the Department for Environment, Food and Rural Affairs (Defra), Travelodge, Mitie and StepChange.
The coalition was initiated through the Government's financial inclusion strategy and it will work to increase the number of UK employees accessing and benefiting from workplace savings by championing uptake, sharing best practice and supporting innovation over the coming years.
How Workplace Savings Work
Workplace savings schemes help people to build up regular amounts into a savings pot, which they can potentially turn to if they get an unexpected bill. Building a savings pot could help protect people from needing to turn to high-cost debt. Employees using such schemes may start saving a default amount via payroll into their own easy access savings account, with savings held in cash, which can be withdrawn at any point without penalty.
The coalition is encouraging employers across the UK to sign up, to bolster their employees' financial security, and work together to support people to save. Employers can join the coalition by inquiring through its website, or contacting the Money and Pensions Service, Nest Insight or Tisa (The Investing and Saving Alliance).
Government and Industry Support
Millions of people are already used to building up their retirement savings through pension schemes run by their employers. Rachel Blake, Economic Secretary to the Treasury, said: "Everyone should have the opportunity to build financial resilience, but we know that when household budgets are stretched, saving can be difficult. The Government's financial inclusion strategy creates more opportunities for people to save through workplace savings schemes. Working with employers across sectors, this coalition will help make workplace savings schemes easier to access and support more working people to build regular savings habits and a financial safety net. I strongly encourage employers to get behind this scheme today."
Claire Costello, chief people officer at the Co-op Group and the coalition's chair, said: "Building consistent saving habits is an important part of improving financial resilience across the UK. With growing evidence of the benefits provided by workplace saving schemes, this collective of employers, supporters and partners will help more people build a financial safety net. By making saving easier and more accessible, workplace saving schemes could transform the savings landscape, and I am excited to work with all involved as the coalition progresses."
Sarah Williams, chief people officer at OCS UK & Ireland, said: "For many colleagues, the gap between a manageable month and a difficult one comes down to whether something unexpected happens. A broken car, a school trip, an appliance that needs replacing. Workplace savings schemes work because they're built around the realities of how people actually live."
