Uber has partnered with Now: Pensions and Adecco to create the first ever pension scheme for flexible workers in the private hire vehicle industry.
Uber will begin rolling out the new pension plan to eligible drivers in the UK and will contribute 3 per cent of a worker’s earnings while the worker can choose to pay in a minimum of 5 per cent of qualifying earnings. Workers will be automatically enrolled in the pension scheme but will have the option to opt-out.
The pension scheme currently only covers Uber drivers but the company has invited Bolt, Addison Lee and Ola to also join. This would create a cross-industry pension scheme which would enable workers to build up their pension regardless of which app they work for as well as encourage harmony across the industry.
Uber regional general manager of Northern and Eastern Europe Jamie Heywood says: “We want to ensure that all eligible drivers can benefit no matter who they earn with, so today I am extending an invitation to work with operators such as Bolt, Addison Lee and Ola to create a cross-industry pension scheme. The new worker rights provided to drivers who use the Uber app are and save for their futures.”
Now: Pensions chief executive Patrick Luthi says: “Now: Pensions are proud to be selected as Uber’s pensions partner and play our part in delivering access to valuable pension benefits to their UK drivers. This is a landmark step forward for this sector and we pledge our support to develop a cross-industry pension scheme. Furthermore, we want to help other industries provide their flexible workers with access to pensions as part of our mission to create a fair pension system for all.”
Stephen Timms, MP for East Ham and chair of the Work and Pensions Select Committee, says: “I applaud this launch, following on from the recent court case and the landmark agreement between Uber and GMB. It extends company-supported pension saving to a large new cohort of workers, including many in my constituency. I also welcome Uber’s call for a cross-sector approach to pension saving. The all-party Work and Pensions Select Committee has called on Ministers for a timetable for its promised Employment Bill, to improve protections for all gig-economy workers.”
Adecco regional president of Northern Europe Alex Fleming says: “We are really pleased to be partnering with Uber on their pension scheme for flexible workers in the PHV industry. As the UK labour market continues to be redefined as a result of the global pandemic, the need for equitable treatment and greater security is integral to building back better and supporting flexible workers. This is an industry first that not only paves the way in improving workers’ rights and protections, but also contributes to sustainable futures for drivers.”
TPR says: “We note the positive steps Uber are taking to ensure their staff receive the pensions they are entitled to. We want to see all eligible workers in this sector have access to pensions saving. The gig economy is set to grow further as the UK emerges from the pandemic and businesses recover and it is only right that all workers contributing to the economy receive the pensions they are entitled to. We welcome innovative solutions by the industry which aim to give staff across the sector the opportunity to save for their retirement.
“Employers in the gig economy should recognise and comply with their automatic enrolment responsibilities voluntarily and promptly. We will take enforcement action where appropriate to ensure all savers are protected.”
The new pension schemes follows the introduction of minimum earnings guarantee and holiday pay for all UK drivers earlier this year as well as Uber’s joint pledge with GMB Union.
GMB national officer Mick Rix says: “Uber’s pension scheme is a massive step in the right direction and will no doubt help thousands of drivers as they reach retirement age. GMB urges other platform-based operators to follow Uber’s lead.”
Aegon head of pensions Kate Smith says: “Confirmation that Uber has started to roll out its pension plan for drivers is an important step towards better retirement savings for workers who have previously been excluded from auto-enrolment. For the first time drivers who earn over £10,000 a year will be auto-enrolled into a workplace pension and benefit from valuable employer contributions. Workers who meet the age and earnings criteria will benefit from a total pension contribution of 8 per cent based on a band of earnings, with 3 per cent paid by their employer, and 5 per cent paid by the worker, including pension tax relief.
“Uber is calling for other operators to follow suit to create a cross-industry pension scheme. We hope this will be a catalyst for these other companies in the gig economy where individuals have historically lagged behind in their retirement savings. Pensions offer a degree of longer term financial security and help to provide a base level of income in retirement.”