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Nest contract set for Govt review

The National Employment Savings Trust contract with administration provider Tata Consultancy Services will be reviewed as new Chief Secretary to the Treasury Liberal Democrat David Laws begins cutting the deficit by reducing waste in the public sector.

Laws will be speaking with Secretaries of State, including Work and Pensions Secretary Iain Duncan Smith, asking them to re-examine all spending approvals given since the beginning of the year and all pilot schemes.

Proposals that required Treasury approvals will have to be resubmitted to the Treasury.

Laws says: “Where projects are good value for money and consistent with the Government’s priorities, they will go ahead. Where they are not, it would be irresponsible to waste money on them. There is no point in continuing pilot schemes where they are too costly to implement.”

The Personal Accounts Delivery Authority announced in early March that Tata Consultancy Services was the successful bidder for the Nest scheme administration services. Former Pensions Minister Angela Eagle signed the first stage of the two part contract later that month.

The contract runs for 10 years, with possible extensions for up to a further five years, and is worth around £600m. The first stage was scheduled to run until October this year, allowing Tata to begin the activity required to set up and administer Nest.

Newly appointed Pensions Minister Liberal Democrat Steve Webb will be charged with signing the second stage of the contract, if it passes the Treasury review.


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There is one comment at the moment, we would love to hear your opinion too.

  1. Julian Stevens 18th May 2010 at 1:06 pm

    If anyone’s talking of cuttting waste, then how about starting with the FSA, which must surely be one of the most wasteful quangos in history?

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