Oral Answers to Questions

Debate between Steve Webb and Jonathan Reynolds

Monday 5th March 2012 Commons Chamber

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

T6. Further to the question asked by my hon. Friend the Member for Cumbernauld, Kilsyth and Kirkintilloch East (Gregg McClymont) from the Front Bench, do Ministers agree that the current restrictions on the National Employment Savings Trust that restrict transfers and limit the amount that can be saved each year diminish the pressure on other established providers to bring down their excess costs and charges? While the Government are reflecting on this, surely they are missing an opportunity to make pensions more affordable for everyone.

[Steve Webb]

The previous Government put those restrictions in place for a good reason—to try to make sure that NEST focused on the bottom end of the market. NEST has had a positive effect and new entrants have come into the market, but we are continuing to look at that issue because we are determined to make sure that people have a choice of good-value, low-cost pension providers.