Labour renews attack on Webb over Nest transfer ban

Shadow pensions minister Gregg McClymont has renewed hostilities with pensions minister Steve Webb over lifting restrictions on the National Employment Savings Trust (Nest) and reforming the small pots pension regime.

McClymont (pictured) has accused Webb of dragging his feet over lifting the ban on transfers in and out of Nest and its contribution limit of £4,400.

Last week Webb told the Work and Pensions Committee that the government’s legal advice was that barriers remained to the limitations being lifted.

Speaking to New Model Adviser®, McClymont challenged Webb to publish this advice.

‘Steve’s initial position was that [lifting the restriction] would breach the [European Union] aid law, and then he moved to a position saying actually there’s no evidence the restrictions are doing any harm, and I think both those things are untrue.’

‘The government has been slow… and has not been transparent in its reasoning,’ he said.

McClymont also criticised plans for a pot-follows-member system to avoid the proliferation of small pots, arguing there was a high chance savers could be moved into worse schemes.