The Government will launch a technical consultation this autumn on removing the annual contribution limit and bulk transfer restrictions on the National Employment Savings Trust from April 2017.
In a written ministerial statement, pensions minister Steve Webb says the Government will also consider removing the individual transfer restrictions from October 1 2015.
The statement says: “The Government intends to remove the annual contribution limit and transfer restrictions on NEST, to ensure all businesses can be confident that this low cost and easy to use scheme is among the options they can choose to enrol their workforce.
”We will commence a short technical consultation on draft legislation, this autumn, to remove the annual contribution limit and the bulk transfer restrictions on 1 April 2017. We also retain the option to remove the individual transfer restrictions, from 1 October 2015.”
The consultation will deliver on plans set out by Webb last July to remove the £4,600 annual contribution cap and ban on transfers in and out of the scheme in four years time.