To ask Her Majesty's Government whether the costs incurred by the Personal Accounts Delivery Authority in setting up the National Employment Savings Trust (NEST) and personal accounts will be transferred to NEST; and, if so, how much will be transferred; and how and when NEST will pay for it. [HL2934]
NEST will be self-financing in the long term, meaning that any loan finance provided by Government to fund the costs of establishment, including those costs incurred by the Personal Accounts Delivery Authority (PADA), will be repaid from members' charge revenues. This will ensure the scheme is delivered at nil overall cost to taxpayers.
Up to the end of February 2010, PADA had received £37 million of loan funding and is expected to receive a further £24 million up to its wind-up on 5 July 2010. All loan funding advanced to PADA is based on evidence of need.
The loan liability owed by the Personal Accounts Delivery Authority (PADA) will, on its wind-up, be transferred to the NEST Corporation, which will then be responsible for repaying the loan along with any further money it borrows from Government in connection with its activities to establish the scheme.
The period in which the loan to NEST Corporation will be repaid will ultimately depend on a variety of factors, including the final costs of NEST and the size and nature of its membership. We anticipate that the total loan period, including the years in which NEST borrows from the Government and the subsequent repayments, will last in the region of 20 years.