Construction workers face pension “black hole”

Grant Prior 1 week ago
Share

The majority of construction workers are not paying into a pension and face poverty in retirement.

A freedom of information request to the Department of Work and Pensions by Unite revealed official estimates show that 797,000 employees in the construction sector are paying into a pension of any form.

This is from a total construction workforce of around 2.2m divided between 1.5m employees and 700,000 self-employed workers according to Office for National Statistics figures.

It means just 36% of the construction workforce is known to be paying into a pension.

The percentage of site workers contributing to a pension is expected to be considerably lower and the number of self-employed workers paying into a pension is likely to be very low.

Unite national officer for construction Jerry Swain said: “These figures are deeply troubling. With the majority of construction workers not saving for retirement, we are creating a destitute generation of future pensioners.

“The way that construction is organised, with short-term engagements, rampant bogus self-employment and nefarious schemes such as umbrella companies, it is incredibly difficult for construction workers to have confidence in their continued employment so as to allow them to consistently pay into a pension scheme.

“The government needs to take urgent action to begin plugging this black hole in construction pension saving, the consequences of not doing so do not bear thinking about.

“After a lifetime of hard manual work the ultimate ignominy for construction workers is to face poverty in retirement. Put simply, construction workers deserve better.”

Latest news

Construction output surge sees cost inflation hit record high

Buyers report rises in input costs hit near 25-year high as materials shortages bite
7 hours ago

Fire at tower days before Grenfell-style cladding due to be removed

More than 40 people injured during blaze at 19-storey building
3 hours ago

Firms shortlisted for £140m Havant reservoir

Balfour, Hochtief and Mackley/Jones JV hunt main reservoir package
9 hours ago

Blackstone makes £1.2bn bid for St Modwen

Investment giant set to acquire big name developer
9 hours ago

London Chalcots towers £100m reclad out to bid again

Camden Council hopes to let Swiss Cottage estate reclad before the end of this year
24 hours ago

Balfour facing strike ballot over “insulting” pay offer

Industrial action ballot planned for workers on £1.5bn Central Rail System Alliance contract
1 day ago

Hill wins 142-home McArthurs Yard job in Bristol

Housing contractor bags first Bristol job at harbourside site
1 day ago

BarhaleDoosan to build organic waste water treatment works

Natural integrated wetland to be built at Clifton wastewater treatment works
9 hours ago

London Nine Elms 12-storey office approved

Construction to start this summer at former Royal Mail site
9 hours ago

Fresh price hike takes structural steel to £800 per tonne

Seventh price hike since last July sees steel sections rise by £50/t
1 day ago

Barratt problem concrete frames and cladding bill hits £163m

House builder sees demand and construction surge but legacy property charges rise
1 day ago

Materials shortages threatening pace of rebound

RICS survey reveals confidence running high but shortages could put brakes on recovery
2 days ago

Henry Boot rejigs senior management

New MDs appointed to head construction and plant operations
1 day ago

Procure Plus plans £1.3bn low carbon housing framework

Firms wanted to supply or fit solar panels and air and ground source heat pumps
1 day ago

Keltbray sells electrical engineering arm to management

MBO at Keltbray Lagan Power three years after contractor acquired majority stake in business
2 days ago

BAM awards £150m worth of Manchester arena packages

North West subcontractors win top billing at Co-op Live project
2 days ago

Contractor Kilnbridge sold to 800-staff ownership trust

Founder of £90m East London contractor sells to workforce trust
2 days ago

ISG chalks up £48m haul of school wins

Deals include a £12m pathfinder 'net zero' school in Bristol
2 days ago

Green light for £37m Dawlish train rockfall shelter

Work to start on 209m long track protection structure this August
2 days ago

Keltbray posts £9.4m loss due to Covid and restructuring

Specialist contractor confident about future with £25m net cash and £224m order book
3 days ago

Construction start date for £200m Basildon scheme

Work to start this autumn on Essex site being developed by Inland Homes and Homes England
2 days ago

New Buro Happold chief to double staff in six years

James Bruce aims rapidly to grow engineering consultant into a global player
3 days ago

Atkins raids Skanska for new finance director

Jo Jarman returns to consultant as new finance director
3 days ago

Kier wins £15m Braintree enterprise centre

Building work at Great Notley to start later this month
3 days ago

Big name concrete firms miss out on major HS2 deal

Skanska Costain Strabag JV awards major package to Kelly Formwork
3 days ago

Covid shakes-up Top 30 M&E contractors rankings

Several M&E firms grow despite 9% fall in revenue last year among top 30 specialists.
3 days ago

Bylor builds second Hinkley reactor shell a third faster

Next massive prefabricated steel ring section for reactor building lifted in by Big Carl
3 days ago

Plans in for 700-bed Nottingham student scheme

Next phase of The Island Quarter scheme submitted for approval
3 days ago

M Group rebrands Skanska highways arm as Milestone

New business launched as £50m takeover deal signed off
4 days ago

Henry Boot to start £110m Walsall logistics project

Remedial works to start at 620,000 sq ft Phoenix 10 logistics scheme
4 days ago

Contractor services