Nest sparks race for AE software market

Around two million employers that do not currently have pension schemes will auto-enrol staff over coming years and may require such tools to avoid breaking the law through non-compliance.

Nest, because of its remit to minimise costs to the taxpayer, will be the only provider not to offer its customers tools for calculating benefits owed on a rolling basis and interfacing this with its payroll system.

Those customers will have to find such tools elsewhere.

AWD Chase de Vere has developed a planning tool for the small and medium enterprise and micro-business markets, which claims to “hold companies’ hands” through auto-enrolment for as little as £300 for each firm.

It will launch the system next month and is already negotiating deals with potential clients, who will receive help with pricing, choosing a provider and the launch of their new schemes.

Meanwhile, Plymouth-based IFA Darren Critten has come up with an online system into which businesses can enter their payroll data to find out how much auto-enrolment will cost them, as well as a series of emails reminding them what they have to do, and when, to be compliant with the law.

Critten’s tool will be distributed online though pensions-related websites, which will be allowed to charge customers whatever they like for using it – with Critten taking a cut of each sale.

But Jamie Fiveash, director of customer solutions at B&CE, said providers have collectively wasted £5m on creating such software, as they could all be using the same package.

B&CE is currently developing its own auto-enrolment software, which will be free for its clients.

Nigel Pettinger, director of customer services at Nest, said: “Nest has been designed to be an easy-to-use, online scheme with simple processes.

“In addition, Nest has published its payroll file format guide enabling employers, payroll providers and other third parties to provide files to us in a clear form. This, together with the information on our website, explains how employers can join and use Nest.”