Mr. Tim Duggan:

There is the possibility of it happening in a few places but I do not think it would be a widespread practice, to be honest. Most occupational schemes are already reading those kind of thresholds, or thereabouts. There are some that are a little low but the standard in the industry seems to be 5% and 5%, which is in excess of what would be the case in six years' time. I have heard it said there is a danger that because auto-enrolment is starting low at 1.5% and building up to that level over the next number of years, some employers may be tempted to drop their contribution level from the current 5% downwards. Looking at what has happened in other countries, there is very little evidence to support that is a feature when you introduce such systems. Does it mean that one employer might do it? Of course, but by and large it is not a trend we have witnessed occurring anywhere else. I think it is unlikely to be a thing.