Webb insists the coalition is commited to auto-enrolment, which was stated in the agreement last week. But he says the Government will take a “long, hard look” at Nest over the summer.
He says: “We are committed to the principle of automatically enrolling people. There are many millions of people who have company pension schemes but do not have any private savings and both parties supported the principal so we put it in the deal that we will go ahead with automatic enrolment.
“What we have said is that we will review the specific way in which that is done. As you know a contract was signed in April to set up the Nest corporation.
“We have got the chance to look at that again over the summer. There is a break in the contract, an option in the autumn but the commitment is to auto-enrolment, if auto-enrolment through Nest, as previously envisaged still looks like the best way we will go ahead with it.
“But we are going to take a long, hard look at it over the summer.”
Speaking to the Financial Times yesterday, Webb added: “The scope [of auto-enrolment] could be smaller than it is now.”
In April, Aegon called for the eligibility threshold for auto-enrolment to be doubled from earnings of £5,035 to around £10,000 and for those over 55 to be exempt in a bid to tackle the means-testing issue.