The annual report and accounts for 2010-11 for the National Employment Savings Trust (NEST) reveals a total expenditure of £30.8 million, indicating the pensions scheme’s expenses were within the budget set by the Department of Work and Pensions (DWP).
The major expenses included staff cost of £15.2 million and an interest of £5 million for a loan from DWP.
During the last financial year, NEST drew down net loan funding of £78.9 million and received grant-in-aid amounting to £1.2 million. The total loan amount from DWP stood at £120 million on March 31, 2011.
NEST had made advance payments of £27.6 million to Tata Consultancy Services for setting up the scheme administration services till the end of tax year 2010-11 and held a cash balance of £22.9 million to meet future payments.
“It’s been a significant year for Nest, which has seen us continue the design, build and test process. Nest is working with a number of volunteer employers who will use the scheme during 2011 and that work is going well,” said Tim Jones, chief executive of NEST.
The report observed that overall expenditure for the year 2010-11 remained low as NEST failed to meet some of its key targets during the year because the government introduced policy reviews and strict expenditure control across the public sector.
The expenditure for the next tax-year will be higher than anticipated, the report forecasted.
“There were a number of constraints that affected our ability to procure services and recruit new people to replace leavers and fill newly arising needs. While these constraints no longer hold us back, they did cause some delays,” the report said.
“Nest is an essential component of the government’s strategy to tackle the dual problems of increasing longevity and widespread under saving for retirement,” said Lawrence Churchill CBE, chairman of NEST.