The government can lift the restrictions on the National Employment Savings Trust (NEST) without "offending" European Union (EU) state aid rules, the shadow pensions minister has claimed.
The Department for Work and Pensions (DWP) announced a call for evidence last week on removing the £4,400 contribution cap and ban on transfers in and out of NEST. But a major stumbling block could be the rules governing EU state aid which prohibits aid from the state which could distort or threaten competition. NEST has so far received £120m in state loans. A legal analysis by Gregg McClymont's senior parliamentary assistant Dr Andy Tarrant argues removing the £4,400 contribution cap and ban on transfers in and out of NEST would not "infringe" EU state aid rules. Tarrant, who is a...
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