Firm also drops £150 absence fines
Oil = $74.33 RATES HIKE HITS HARD
WITH TRICIA PHILLIPS AUTOMATIC enrolment into workplace pensions means more than 9.5million people are now saving towards their retirement, the Office for National Statistics said yesterday.
While it’s good that almost threequarters of workers are now saving, compared to less than half in 2012, the amounts being put in are way too low as most workers and bosses are contributing the bare minimum.
Almost half of private sector employers put in less than 2% of a worker’s pensionable earnings in 2017, compared to 6% in 2012.
Last month the minimum contributions – from bosses and workers combined – rose from 2% to 5%, but this will still leave many people without adequate pots for their retirement.
Industry experts say between 12% to 15% of earnings need to be saved over a lifetime of work for the chance of building up a decent amount for a comfortable older age.
Jeanette Makings, head of financial education at investment firm Close Brothers, said: “Getting people into the savings habit is crucial, but this must go hand in hand with education about the real cost of retirement, along with guidance as to how to get financially ready.” DELIVERY giant DPD has been pressured into offering thousands of drivers a better deal.
Measures include a pledge to pay all couriers the living wage and scrapping £150-a-day fines for drivers who miss work.
The move follows a review triggered by the death in January of self-employed courier Don Lane. Mr Lane, 53, who lived in Christchurch, Dorset, suffered from diabetes but was fined £150 for missing work to attend a medical appointment.
Most of DPD’s 6000 drivers in the UK are self employed, on two types of contracts.
The company, owned by France’s La Poste, claims couriers should already be earning above the voluntary living wage, currently £8.75 an hour, or £10.20 in London.
Its pledge is to ensure this happens, regardless of hours worked.
Self-employed drivers will also get 28 days of paid holiday, pension and sick pay if they ■ SHARES in transport giant FirstGroup tumbled 12% after a US private equity firm walked away from making a bid. Apollo Management said it would not be making an offer for the business, which runs rail franchises including South Western Railway and owns Greyhound buses in the US. FirstGroup bosses still face calls for a shake-up from “activist” investor West Face Capital. ■ The chairman of British Gas owner Centrica, Rick Haythornthwaite, is stepping sign a new worker contract. This is mainly designed for franchisee drivers but would mean limiting themselves to a five-day week. DPD boss Dwain McDonald claimed the changes “represent a complete reappraisal of every aspect of our package”.
The GMB gave the announcement a cautious welcome. Mick Rix, the union’s national officer, called it a “step in the right direction” but vowed to monitor the new code when it kicks in.
The move comes amid growing anger at the treatment of workers in Britain’s gig economy, with many employed on zero-hours contracts. Food delivery firm
Deliveroo recently announced it was spending £10million to equip 35,000 riders with free accident insurance.
Do you work for DPD? Tell us your experience of the company via the contact details at the top of the page. ■ Demand for workers hit a threemonth high in April despite the economy suffering a slowdown. The number of companies looking for permanent and temporary staff both increased, just as they’re finding it harder to find them, said analysis by the Recruitment and Employment Confederation. SLIM DOWN House of Fraser is set to axe stores STRUGGLING House of Fraser has been hit with a 15% increase in its business rates. Industry expert Altus Group calculated the bill for the Scots chain’s 53 stores in England and Wales had jumped by £4million to just over £30m this year alone. The extra outlay could be one reason House of Fraser is set to announce a wave of store closures next month. The increases would have been less had it not been for ‘transitional relief’ measures in the last rates revaluation. It meant House of Fraser was denied big rates savings on 20 outlets, said Altus. Analysts predict around 20 stores are lossmaking.