Uber launches pension scheme for all UK drivers

Ride hailing firm Uber is set to pay out millions of pounds in missed pension payments to UK drivers.

The repayments date as far back as 2017 under a new deal that was secured with the retirement savings watchdog.

It comes after a supreme court ruling earlier this year, which forced the company to guarantee its 70,000 UK drivers with pensions, holiday pay and a minimum hourly wage.

According to the Guardian, Uber has shared that its private hire drivers would now be auto enrolled on to a scheme which would contribute three percent of earnings into a pension pot.

The same scheme will give drivers the option to contribute up to five percent of qualifying earnings but will also allow them to opt out.

Commenting on the move, Jamie Heywood, regional general manager of northern and eastern Europe at Uber, said: “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.”

It’s Uber’s hope that competitors will form a cross-industry scheme so that drivers who work on several different apps can benefit from a pension.

Gig economy growth

Drivers who work for firms such as Uber are considered gig economy workers, and The Pensions Regulator (TPR) has shared that this economy is set to grow even further as the UK comes out of the other side of the pandemic.

With this in mind, a spokesperson for TPR has stated that these workers therefore need more support regards pensions.

“We note the positive steps Uber is taking to ensure its staff receive the pensions they are entitled to. We want to see all eligible workers in this sector have access to pensions saving,” they said.

“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.”

The spokesperson concluded that TPR would take enforcement action where necessary in order to support savers.

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