The Government has confirmed the National Employment Savings Trust will go ahead as part of the auto-enrolment reforms.
In a paragraph in today’s Comprehensive Spending Review, it says: “The Department for Work and Pensions settlement includes…funding for the introduction of auto-enrolment and the establishment of Nest, to help individuals save for their retirement and encourage high quality pension provision by employers.”
In a statement, Nest chief executive Tim Jones says: “The work we have been doing over the summer has ensured that Nest is now really taking shape and will be ready to launch in low volumes in 2011.”
Association of British Insurers director of life and savings Helen White says: “We welcome the commitment the Government has shown in pressing on with plans to get people saving, by announcing that they will introduce automatic enrolment into workplace pensions along with setting up Nest.
“We appreciate these are challenging financial circumstances, and that brings into sharp focus the need for people to save and plan for their retirement so that they can have a decent income when they stop working.”
Scottish Widows head of pensions market development Ian Naismith adds: “The insurance industry already provides high-quality pension arrangements for millions of people, but it is not commercially viable for it to serve small employers with lower-earning staff.
“Nest will provide simple, good value pensions for those who do not currently have easy access to pensions, and will complement existing provision.”
Nest’s reprieve follows months of uncertainty surrounding the future of the scheme. It has survived the Cabinet Office ’quango’ review, a three-man independent review of automatic enrolment and now the Chancellor’s Comprehensive Spending Review.