The DWP will be provided with the funding necessary to introduce auto-enrolment from 2012 and establish NEST, the government confirmed today.
It follows speculation NEST would be scrapped as part of Chancellor George Osborne's £81bn spending cuts.
NEST Corporation welcomed the confirmation NEST would form part of its proposals to deliver automatic enrolment.
Chief executive Tim Jones said: "We are very pleased that NEST will play its part in delivering automatic enrolment and help millions of people save for their retirement.
"The work we have been doing over the summer has ensured that NEST is now really taking shape and will be ready to launch in low volumes in 2011."
More details on the outcome of the Making Automatic Enrolment Work review are expected to be announced by the government shortly.
NEST will provide more information about its progress and next steps once the details of automatic enrolment have been confirmed.
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