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date: 12 August 2010

embargo: For immediate release

Major changes to NEST could break fragile consensus on workplace pensions

Major changes to plans to auto enrol workers into new low-cost occupational pensions in 2012 risk breaking the fragile consensus on workplace pension reform and condemn another generation of workers to poverty in retirement, the TUC warns today (Thursday) in its submission to the Government review of workplace pensions.

The TUC submission says that while it understands the need for the incoming Government to examine plans for the new National Employment Savings Trust (NEST) - workplace pensions that come into effect in 2012 - going back now could fatally undermine the start up of NEST.

With two out of three private sector workers no longer getting any employer support for building up a pension, the new low-cost workplace pensions targeted at low and median earners are too important to fail, says the TUC.

The fragile cross-party consensus over workplace pension reform, based on the recommendations of the Turner Commission in 2005 and also involving groups representing unions, consumers, employers and pensions bodies, has held together for five years and the Government should not risk splitting it now, the TUC believes.

The submission says that the planned review of NEST in 2017 provides a far better opportunity to review its effectiveness as it allows enough time for the new system to bed down.

TUC Assistant General Secretary Kay Carberry said: 'Whilst any new Government should closely examine the introduction of a major reform of workplace pensions, major changes now risk undermining the whole package before it has even started.

'While no group is 100 per cent happy with NEST, a careful cross-party consensus has been forged over the last five years.

'The new workplace pensions are simply too important to fail. With two out of three private sector workers no longer getting any employer support for building up a pension, a failure to introduce NEST now will condemn another generation of low and median earners to poverty in retirement and complete reliance on the state in old age.'

NOTES TO EDITORS:

- More information on the Government's Workplace Pension Reforms review is available at www.dwp.gov.uk/policy/pensions-reform/workplace-pension-reforms/

- The TUC submission to the DWP consultation is available at www.tuc.org.uk/extras/autoenrolmentsubmission2010.pdf

- All TUC press releases can be found at www.tuc.org.uk

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Contacts:

Media enquiries:
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk

Press release (500 words) issued 12 Aug 2010