A number of consumer groups, employer organisations and the Trades Union Congress (TUC) have today written to Pensions Minister Steve Webb, calling for the “urgent need” to lift restrictions on Nest.

The Trades Union Congress (TUC), Age UK, EEF The Manufacturer’s Organisation, the Federation of Small Businesses, the British Chambers of Commerce and Which? all signed the letter which argues that restrictions are preventing employees from building up the pension they desire. They argued that “lifting the restrictions in 2018 is not a compromise position and will be too late for many employers, a large number of which have a staging date in 2014”.

National Policy chairman of the Federation of Small Businesses Mike Cherry said: “Nest was intended as a low-cost default scheme targeted at small businesses and their employees, who have not been well served by the pensions industry.

“The restrictions on contributions and transfers placed on Nest will place an unacceptable burden on small firms, who could find themselves having to juggle more than one scheme to accommodate their workforce, and will hit savers.”

The groups also argued that keeping the restrictions on Nest will continue to pose many administrative problems for employers and will have a profound impact on their employees. The government’s consultation on the lifting of Nest restrictions closes today.

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