UK HR Term
NEST
The National Employment Savings Trust (NEST) is a workplace pension scheme set up by the UK government to support auto-enrolment, particularly for employers without an existing scheme. NEST has a public service obligation to accept any employer who wishes to use it.
In plain English
NEST is a workplace pension scheme set up by the government in 2010, ahead of the auto-enrolment rollout, to make sure every UK employer had access to a low-cost qualifying scheme — particularly small employers who would have struggled to set one up commercially.
What makes NEST different
Unlike commercial schemes, NEST has a public service obligation — it cannot turn an employer away. If you ask NEST to take your scheme, it must accept. This is unique among UK workplace pensions and is the reason it's the default for most micro-employers and start-ups.
How it's funded
NEST is run by NEST Corporation, a non-departmental public body, but its funds are held in trust for members and managed independently. It originally received a government loan to start operating, which it is repaying from member charges. Member fees are kept low by design — a 1.8% annual contribution charge plus a 0.3% annual management fee.
Membership
NEST has over 12 million members across more than 1 million employers, making it one of the largest pension schemes in the UK by member count.