Partner Article

CBI offers support to auto-enrolment

The CBI has welcomed the Work and Pensions Select Committee’s endorsement of auto-enrolment pensions, which is aimed at creating a sustainable pensions system.

Commenting on the report by the Work and Pensions Select Committee and the National Employment Saving Trust, Neil Carberry, CBI director for Employment Policy said: The change is a key part of developing a sustainable pension system in light of the longer, healthier lives we are enjoying. We will all need to work for longer and, crucially, save more.

“The Committee is also right to support a simpler state pension and to encourage government to look again at the interaction between long-term savings for pensions and saving for housing.”

However, Mr Carberry is concerned that making any further changes to the proposals could damage the carefully balanced regulatory framework.

He continued: The review of NEST scheduled for 2017 is the right time to address issues such as which controls have placed on saving into NEST.

“It’s disappointing that the Committee has not focused on the real reason why NEST may be struggling to compete with low-cost private sector competitors, which is its high and complex charging regime.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .