Pensions minister Steve Webb has today stated that more evidence must be obtained if the government is to lift Nest restrictions, which industry figures argue are causing unnecessary complexity to employers’ decision making.

Speaking to the Work and Pensions Committee today, Webb said that there must be sufficient evidence to suggest that Nest restrictions are “causing consumers to suffer adverse retirement outcomes”.

Webb stated that at the moment there is plenty of evidence to suggest that Nest is helping to drive down charges and has proved “innovative” in the savings place.

He stated that he was “not frightened” by the future financial viability of Nest and added that “come what may, it could be that Nest will have significant volumes of members”.

In November, the Department for Work and Pensions launched a call for evidence on Nest restrictions which closes on 28 January. Nest is currently subject to an annual contribution limit of £4,400 and a ban on transfers in and out of the scheme. Industry figures have argued that restrictions are influencing employers’ choices of auto-enrolment schemes.

The Committee also quizzed Webb further on his defined ambitions proposals, the new middle ground between DB and DC. Webb stated that further legislation is needed to create aspects of new defined ambition schemes, describing it as a “patchwork” and “diverse”.

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