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Nest transfer ban ‘benefits industry at expense of employees’

Baroness Drake says the ban on transfers into Nest will benefit the pensions industry at the expense of employees in the scheme.

Under the current rules, people who are auto-enrolled into a pension and go into Nest will not be able to move existing pots into the scheme.

Giving evidence to the Work and Pensions select committee today, Baroness Drake said this inability to move pots into Nest has come as a result of lobbying from the industry.

She said: “I have real concerns that some arrangements have been allowed as a result of responses to various representations that do not serve the employee well. One is the ban on transfers into Nest. I cannot see any gain for the employee on transfers into Nest. It cannot support the employee it can only support the industry.”

Baroness Drake was a member of the Turner Commission, which came up with proposals for auto-enrolment and for a national saving scheme which later became Nest.

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